India’s Natural Rubber Production to Increase by 5% in 2023-24, Boosted by Automobile Industry
India’s natural rubber production is set to witness a significant boost in the upcoming fiscal year, thanks to the thriving automobile industry. The All India Rubber Industry Association projects a 5% increase in natural rubber production, reaching up to 8 lakh metric tonnes, surpassing the previous fiscal year’s output.
Ramesh Kejriwal, the president of the All India Rubber Industry Association, expressed his optimism for the industry’s growth, highlighting the crucial role played by the expanding automobile sector. Rubber finds extensive usage in various automotive applications such as belts, tires, and more, thereby driving the demand for natural rubber.
Kejriwal further explained that excessive rainfall positively impacts rubber production, further contributing to the sector’s growth. Moreover, the association anticipates a rise in domestic demand, reducing the need for imports. In the previous financial year, around 5 lakh metric tonnes of natural rubber were imported from countries like Thailand, Malaysia, Sri Lanka, and Vietnam.
A significant reason behind the influx of imports is the disparity in prices. Domestic rubber prices are relatively higher than those in the international market, primarily due to the slower uptake by China and the European Union. As demand increases in these regions, there is a possibility of price escalation, reducing the necessity for imports.
The growth of India’s automobile industry has been a driving force behind the expansion of the rubber sector. With a wide range of applications in the automotive manufacturing process, rubber has become an essential component. As a result, natural rubber production has witnessed remarkable progress.
This projected increase in natural rubber production indicates the positive trajectory of India’s rubber industry. With the support of the flourishing automobile sector and favorable weather conditions promoting rubber cultivation, India is well-positioned to meet the rising demand for this essential commodity.
In conclusion, India’s natural rubber production is expected to rise by 5% in the fiscal year 2023-24, bolstered by the strong performance of the automobile industry. The All India Rubber Industry Association remains optimistic about the sector’s growth, attributing it to the increasing usage of rubber in various automotive applications. As the demand for rubber continues to surge, India’s natural rubber production is poised to meet the needs of the domestic market more effectively.
