MUMBAI (Commodity Online): India’s natural rubber output rose 11.9% on year in August from 64,750 tn to 72,500 tn. Demand declined 0.9% on year from 79,750 tn to 79,000 tn, according to provisional data released by Rubber Board.

In Apr-Aug output moved up 8.5% to 2, 93,750 tn while demand rose 3.4% from 3, 77,600 tn to 3, 90,350.

Rubber imports fell to 18,834 tn in August from 22,640 tn, and exports were also lower at 15 tn against 91 tn in the same period last year. Rubber Board reported on Wednesday that the production went up mainly due to favorable weather and better prices, also better farm care practices helped to increase tapping during the rainy season.

Although overall demand moved up during Apr-Aug, consumption in August declined marginally. Consumption declined in the preceding month of July too. The lockout at Apollo Tyres manufacturing unit in Perambra was a reason for the decline in demand.

Imports of natural rubber declined as the price of sheet rubber was lower in Apr-Jun in the domestic market compared with rates in overseas market.

To stabilize the supply and demand of natural rubber in the world market the Malaysian Government is cooperating with key natural rubber producing countries like Thailand and
Indonesia.

Under the Supply Management Scheme, the three major producers supplying over 80% of the world’s natural rubber have agreed to control their exports in the long run to bring about a better balance between supply and demand to stabilize the price said Senator A Kohilan, the Deputy Minister of Plantation Industries and Commodities.

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