Natural rubber output may rise 4.6pc in India

KOCHI, May 17 (Business Standard): The Rubber Board has projected an increase of 4.6 per cent in natural rubber (NR) output at 902,000 tonnes for the current financial year as against 861,950 tonnes in 2010-11. According to the board, total domestic consumption of NR would be 977,000 tonnes depicting a growth of 2.9 per cent as against 949,205 tonnes in the last financial year. The board's latest projection differ with the estimates of All India Rubber Industries Association (AIRIA) and Automotive Tyre Manufacturers Association (Atma). The associations had said that in the last four financial years NR production had increased only one per cent, while the consumption increased more than 15 per cent. In the current financial year, according to industry estimates, domestic consumption is likely to lag behind production by 189,000 tonnes. New capacities and major expansion plans undertaken by tyre companies to cater to booming automobile industry will lead to an increase of 150,000 tonnes in consumption. Refuting board's projection on consumption, AIRIA and Atma said by the end of this financial year consumption would be 1.08 million tonnes, up 150,000 tonnes, leading to a gap of 189,000 tonnes in the local supply and demand. But the board projects a shortage of 75,000 tonnes only. There would be a reduction in imports, this year, according to board's projection. It projects imports to be 120,000 tonnes as against 177,637 tonnes last year. Also, it projects export of 50,000 tonnes of NR as against 29,851 tonnes in 2010-11.