India has emerged as the third largest consumer of natural rubber after China and the US, and exceeding Japan, according to the 2008 figures released by the Rubber Board.
According to a report by the Rubber Research Institute of India (RRII), rubber prices have recorded a negative growth of 0.55% between 1980-81 and 2007-08. On the other hand, farm income rose during the period by 3.13% due to productivity growth of 3.71%.
Natural rubber consumption in India in the fiscal 2009-10 increased a mere 1.2%, reflecting the impact of recessionary tendencies. The previous fiscal had witnessed an increase of 5%. However, there have been visible signs of recovery since February 2009. During April-June, consumption increased by 1.9%. Consumption during 2009-10 is projected at 8.81 lakh tonnes, according to the Rubber Board.
The Board referred to the Automotive Tyre Manufacturers Association’s (ATMA) report that truck and bus tyre production had declined 2% over the previous year, while exports fell 20%. However, economic recovery is expected to gather momentum in the second half of the current fiscal, providing impetus to the manufacturing sector. The average price of RSS4 during 2008-09 in the domestic market was Rs 101.12 per kg as compared to Rs 103 .79 per kg reported for RSS3 in the international market.