Excess rains bring down India’s natural rubber (NR) production estimate by 5.7% in 2020


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Indian natural rubber (NR) production during 2020 is expected to be lower by 5.7% from the previous year at 6.62 lakh tonnes due to excess number of rainy days and the resultant loss of harvesting days, the Association of Natural Rubber Producing Countries (ANRPC) said.

ANRPC pegs the world production of natural rubber during 2020 at 12.597 million tonne, down 9 % from the previous year, as climatic change, extreme weather, and leaf diseases disrupted the production in major rubber-growing countries.

The latest outlook by the inter-governmental organisation of 13 rubber producing countries said India has scaled up its consumption outlook for 2020 to 10.18 lakh tonnes with the automotive sector in a recovery mode.

On June 12, 2020, the government-imposed curbs on imports of certain new pneumatic tyres used in motor cars, busses, lorries, and motorcycles by including them under a ‘restricted’ category. As per the new policy, the import of these tyres could be made only with a licence issued by the Directorate General of Foreign Trade (DGFT).

ANRPC reports that the new policy helps domestic manufacturing of auto-tyres as well as the domestic consumption of NR. Accounting an anticipated 1.2% increase during November-December, the likely world consumption of NR during the full year 2020 is expected at 12.811 million tonne by representing a 6.9% fall from the previous year.

According to the report, the world consumption of NR in 2020 is likely to be higher than previously expected due to the improved performance exhibited by China and India. The outlook on consumption of NR in non-ANRPC region, especially in the US and Europe, has been scaled down in view of the second wave of the pandemic and the additional containment measures introduced by the respective governments in the last quarter of the year.

The down-scaled consumption in the US and Europe is expected to be offset by the restored momentum exhibited by the consumption sector in China. The report estimates the world consumption to make a recovery by increasing at 4.9% rate to 13.436 million tonne of NR during 2021. Despite growing at the anticipated 4.9% rate, the consumption in 2021 will not reach the quantity consumed in 2019 of 13.768 million tonne.

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