India is currently facing a pressing issue of a shortage of natural rubber, with domestic production falling short of demand by approximately 5.5 lakh tonnes. According to Shashi Singh, President of the All India Rubber Industries Association (AIRIA), the production of natural rubber in India has seen a slight increase from 8.4 lakh tonnes in 2022-23 to 8.6 lakh tonnes in 2023-24. However, the consumption of natural rubber has also risen significantly, from 13.5 lakh tonnes in 2022-23 to 14.2 lakh tonnes, resulting in a deficit of 5.5 lakh tonnes.
India has historically relied on imports due to the inadequacy of domestic natural rubber production to meet demand. Apart from the 25% customs duty or Rs 30 per kg on natural rubber imports, the availability of natural rubber has become a concern. With China stockpiling and Bangladesh, a significant source of natural rubber, facing instability, the situation has become more challenging.
One immediate consequence of this shortage is a substantial increase in the price of natural rubber. Currently priced at Rs 247 per kg, it is the highest it has been in 15 years, compared to Rs 182 per kg on April 1, 2024. In just four months, the price has nearly doubled, posing a significant challenge for industries reliant on natural rubber.
The rise in natural rubber prices can have far-reaching implications for various sectors, including manufacturing, automotive, and agriculture. It underscores the need for strategic planning and investment in domestic production to reduce dependency on imports and stabilize prices in the future. Amidst these challenges, there is an opportunity for innovation and sustainable practices in the rubber industry to address the shortage effectively. Let’s hope for a swift resolution to this crisis to ensure the smooth functioning of industries dependent on natural rubber.
