The country’s total rubber consumption is projected to double to 3.6 million tonne by 2030, as per the report
Led by its diverse applications in both tyre and non-tyre sectors, India has a strong and well-developed rubber industry. A report has revealed that India’s natural rubber (NR) production has grown 8.6 per cent from 7.89 lakh tonne in the financial year 2021-22 (FY22) to 8.57 lakh tonne in FY24 with the industry estimating it will hit 8.82 lakh tonne in FY25.
In its report, Infomerics Valuation and Ratings stated that India produced 78,000 tonne of NR during September 2024 compared to 75,000 tonne produced during the same month a year ago. The total quantity of NR produced from April to September 2024 was 3,61,000 tonne, an increase of 1.4 per cent from the quantity 3,56,000 tonne produced during the same period in the previous year.
R. Mukhopadhyay, Chairman of the Indian Rubber Institute stressed at Rubbercon 2024 in Kochi, “Despite global challenges, India is positioning itself to become a leading supplier of rubber products by 2030, with per capita consumption expected to rise from the current 1.3 kg to 2.5 kg. The country’s total rubber consumption is projected to double from 1.8 million tonne to 3.6 million tonne by 2030.”
Currently, India’s annual NR consumption is approximately 14.16 lakh tonne and is projected to increase by 5 per cent, reaching around 14.86 lakh tonne by the end of FY 2024–25. The report added that as forecasted by the IRSG, the world rubber consumption is expected to reach 35.55 million tonne by 2031, and NR and synthetic rubber demand are expected to be 17.37 and 18.17 million tonne, respectively.
Arnab Banerjee, Managing Director and Chief Executive Officer of CEAT, highlighted that domestic NR prices soared to a 15-year high of approximately Rs 250 per kg during the first half of the fiscal year. Tyre manufacturers anticipate some relief from the high raw material costs in the second half of the fiscal year, following the significant impact of these elevated prices. He further added, “Typically, domestic, and international NR prices move in tandem, with a difference of Rs 5 to Rs 10 per kg. However, this time, the gap between domestic and international prices widened significantly, reaching as much as Rs 50 per kg.”
Despite soaring NR demand in 2024, productivity struggles due to climate change, with extended monsoons reducing tapping days and latex output. The report stated that yield dropped from 1879 kg/ha in 2006-07 to 1485 kg/ha in 2023-24, increasing reliance on imports. Adverse weather conditions, including excessive monsoon rains in Thailand and typhoon damage in China, led to a forecasted 4.5 per cent decrease in global NR production, bringing it down to approximately 14 million metric tonne.
