On June 10, foreign media reported that the Indian Rubber Board released data showing a drop in India’s natural rubber production during May, while consumption saw a modest increase.
Production for the month fell by 10% year-on-year to 53,000 tons, down from 59,000 tons in May of the previous year. Meanwhile, domestic consumption rose slightly to 83,500 tons, up from 81,325 tons in the same period last year.
The decline in global rubber prices has made imported rubber more appealing to manufacturers reliant on the material. As a result, India’s rubber imports surged in May. According to the Rubber Bureau, imports jumped by 64% to 34,419 tons compared to the same month last year.
Looking ahead, the Rubber Bureau forecasts that total rubber imports in the first three months of fiscal year 2014-2015 could rise by as much as 70% compared to the same period in the previous year.
India primarily sources its rubber from neighboring countries such as Indonesia, Vietnam, Malaysia, and Thailand. With rising demand and falling global prices, the country is expected to continue relying heavily on these key suppliers in the coming months.
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