India's imports and output of natural rubber are likely to be at the same level for the first time in 2018, given rising consumption and falling production.
India's Rubber Board has lowered its target for 2018-19 Rubber production from 700,000 tonnes to 600,000 tonnes after adverse weather caused a sharp drop in output in the first half of the year.The agency expects India to import 600,000 tons of rubber this year.
The country produced 694,000 tonnes of rubber in 2017/18.
India's imports jumped 35 per cent to 356,255 tonnes after natural rubber production fell 10 per cent to 344,000 tonnes in the seven months to October, while consumption jumped 16 per cent to 716,640 tonnes.
"In the current environment, production and imports are likely to be the same," said CJ Augustine, secretary of the Indian Rubber Dealers Federation.After September, the amount of gum was improved.Rubber production reached 67,000 tons in October alone, up 5,000 tons from a year earlier.
However, the domestic price of rubber in the country has fallen with the international price, which may discourage small farmers from cutting rubber.The price of rubber sheeting has fallen 6% this month.
Although the harvest season has arrived, and although it has increased from previous months, the yield has not reached the expected level.Because there are cheaper imports of rubber for use, tire companies on the country's domestic rubber demand is also relatively light.
India's rubber production hit a record 903,000 tonnes in 2011/12, when consumption was 964,000 tonnes and imports 214,000 tonnes.In the last four years, falling production and rising consumption have pushed imports above 400,000 tonnes.