Hyderabad: Indian rubber prices have consistently remained above international market rates for more than a decade, with a marginal 2 percent increase in natural rubber production over the past year, according to officials from the Rubber Board. Reports indicate 11.2 percent decline in India's natural rubber imports this year, with production for the current fiscal year surpassing the previous year's figures in the April-January period.

Rubber production in India from April to January 2022-23 stood at 7,25,000 metric tons, rising to 7,39,000 metric tonnes in 2023-24. During April-January 2023-24, rubber consumption increased by 5.4 percent to 11,7900 metric tonnes, while imports during the same period dropped by 11.2 percent to 4,10,770 metric tonnes.

India's rubber exports have remained minimal due to competitive challenges, but a recent statement from the Rubber Board indicated that Indian sheet rubber prices eased below Bangkok prices in January 2024. This shift was attributed to supply constraints stemming from wintering in Southeast Asian countries and unfavorable weather conditions in November-December.

In a strategic move to leverage market opportunities, the Executive Director of the Rubber Board, M. Vasanthagesan, as reported in another daily, has called for a meeting with rubber exporters and Rubber Board companies at the Board's headquarters in Kottayam, Kerala, on March 15, to be held in a hybrid format. The primary objective of the meeting is to assess the current market scenario and explore export prospects, focusing particularly on various grades of sheet rubber.

The government is incentivizing sheet rubber exports with 1.40 percent of Free On Board value under the 'Remission of Duties and Taxes on Exported Products Scheme'. Additionally, Indian rubber is being promoted under the brand 'Indian Natural Rubber', a strategic initiative by a rubber-producing nation to certify the quality of exported sheet rubber.

During the seventh edition of the India Rubber Meet (IRM 2024) held in Guwahati last month, Rubber Board officials announced a significant allocation of 70,000 hectares of land for rubber plantation under the Indian Natural Rubber Operations for Assisted Development (INROAD) project across 93 districts in northeastern states.

The manufacturing industry has committed Rs 1,000 crore towards planting two lakh hectares of new rubber and an additional Rs 100 crore for enhancing the quality of natural rubber through best practices, training, and skill development. The INROAD project aims to establish one lakh hectares of new rubber plantations in Assam, followed by 30,000 hectares in Tripura.

Tripura, currently cultivating rubber on 97,171.93 hectares, is the second-largest natural rubber-producing state in India after Kerala. Annually, it produces 1,02,989 tonnes of rubber valued at Rs 1620 crore.