India strongly increases the import of natural rubber
India's rubber market is witnessing a sharp decline in output, so before the consumption situation has increased rapidly, India has increased imports of rubber, especially natural rubber.
According to the Rubber Board, in the first half of this year, rubber output in India dropped to 600.000 tonnes, while the production target was set at 700.000 tonnes per year (the period of 2018 - 2019). However, the rubber market has seen fluctuations and severe weather conditions that makes imports of rubber increased sharply. The continuous decline in output and the rapid increase in consumption have led to annual output and imports of natural rubber in India reaching almost the same level earlier this year.
Data provided by the Rubber Board of India shows that in the seven months until October 2018, rubber output fell by 10 percent from a year ago to 344.000 tonnes, and consumption rose by 16 percent to 716.040 tonnes, resulting in the import of natural rubber of this country to increase by 35%, reaching 356,255 tonnes.
"In the current situation, the ability to produce and import rubber can reach similar numbers," said Mr. Augustine, Secretary of the Indian Rubber Federation. Particularly in October, production reached 67.000 tonnes, 5.000 tonnes higher than the same period last year. However, the decrease in domestic rubber prices may prevent farmers from regularly exploiting them. Sheet rubber prices fell by about 6% in November to 118 rupees / kg. About 5-10% of farmers can stop exploiting as the current price is not feasible. "
In addition, demand from tyre manufacturers fell because imported rubber was at lower prices.
In India, the highest volume of rubber ever recorded was over 903,000 tonnes (2011-2012). Consumption at that time reached 964,000 tonnes and imports were 214,000 tonnes. Thus, over the past four years, India's rubber imports were estimated to be more than 400,000 tonnes.
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