The Indian rubber industry’s over-dependence on imported, cheap natural rubber may be highly unsustainable, posing serious challenges for its growth and competitiveness, said Rubber Research Institute of India.
There are clear indications that the industry is losing its momentum and its contributions to the economy are on the decline in recent years, a study carried out by the RRII said.
There are structural changes happening to the industries of major natural rubber exporting countries and availability of cheap rubber in the international market cannot be taken for granted, it observed.
Natural rubber has a dominant role in the rubber industry, as it constitutes 66 per cent of the total amount of rubber the industry consumes. In recent years, rubber production has been on the decline as a result of growers abstaining from tapping the trees because of non-remunerative price.
Despite declining domestic production, rubber consumption and the industry continued to grow, albeit at lower rates, with substantial imports. The longer the decline continues, the more difficult it will be to reverse the trend because of the perennial nature of the crop, the study said.
Indian rubber industry is too important for the economy to be left to the uncertainties and vagaries of supply issues in the global market for long.
The study, therefore, suggested proactive steps to sustain the domestic rubber production base with adequate public investment are urgently required to ensure sustained domestic supply to the industry.
In a major relief to farmers who are reeling under stress of low rubber price, another study by the institute suggested cultivation of cocoa as a potential inter-crop for mature rubber under tapping.
RRII has successfully demonstrated the initiative on a small landholding in Kerala representing the central traditional rubber growing tract in India.
Source: The Hindu Business Line