Rubber production falls 15.5% in April-August

Fall being seen as one of sharpest falls during recent years

Natural rubber production has seen one of the sharpest fall in recent years during April- August period of the current financial year.

For the five month period domestic production has slowed down 15.5% as per the latest data released by the Rubber Board.

The cumulative production figure was 265,000 tones as against 313,700 tones in the same period of last financial year. 5.5% drop recorded in August alone as the monthly out put decreased to 69,000 tones as against 73,000 tones in August, 2012.

According to farmers heavy monsoon during June – August period is the main reason for such a sharp fall in production.

Also damage to plantations contributed much to the fall. Major producing districts like Kottayam and Pathanamthitta have recorded 35% fall in production during June and July.

Tapping of rubber trees was stalled for weeks together due to bad climatic condition. There was a spill over of monsoon in August also, they said. In June 12.9% fall recorded in monthly production.

There is set back on natural rubber consumption also as 2.8% drop recorded during April – August period. 408,805 tones were consumed during the period as against 420,510 tones in the same period of last financial year.

In August, consumption was 80,000 tones as against 83,430 tones in August, 2012, registering a decrease of 3%.

Both Consumption and production are on dropping mode in the current financial year. The general economic slow down and set back to automobile manufacturing industry are the major reasons behind the fall in NR consumption.

However, import to the country increased to 128,465 tones in April – August period as against 97,862 tones. There was 100% plus increase during August at 40,809 tones as against 17,684 tones, as per the Rubber Board data.

The overseas market is advantageous to the rubber based industries, especially the tyre industry as the global prices are pretty lower than the local prices.

Export of rubber is on a pathetic condition as the total export in the five month period was 2319 tones as against 6413 tones in April – August period of 2012-13.

The Rubber Board data said that the country had a stock of 210,000 tones of rubber at the end of last month as against a stock of 218,000 tones, a year ago.