The domestic natural rubber availability scenario continues to be bleak despite the fact that prices are ruling at a 13-year high, according to Automotive Tyre Manufacturers Association (ATMA).
Based on the availability of natural rubber in the domestic market, during the six months (April-September ’24), ATMA estimated production at 2,25,000 tonnes, 37 per cent lower than the 3,56,000 production figure published by Rubber Board for the corresponding period a year ago.
Rubber Board’s data on production for the recent period is long overdue. The official month-wise production statistics, as given on the Rubber Board website, is for the period up to May’24 only- a lag of 4 months. The association has urged the Board to expedite the publication of monthly NR production and publish early estimates of production by the 10th of the following month.
Summer impact
Moreover, the production figures so far published by the Board for April and May need to be revisited as these do not reflect the actual availability which is awfully short of published figures. Low NR availability has been linked to unprecedented harsh summer this year followed by untimely heavy rains from mid-May onwards.
“We trust Rubber Board will take the requisite action to revisit the mechanism of data collection and share production estimates taking into account real market dynamics in the interest of the entire value chain including the consuming interests”, said Rajiv Budhraja, Director General ATMA.
ATMA also expects the Board to suitably revise the projected production of 875 thousand tonnes for FY24-25 so as to reflect actual market arrivals.
Production planning at tyre plants is intricately linked to availability of natural rubber, a key raw material and therefore dissemination of timely and nearly accurate data about domestic production is crucial, including for planning imports, ATMA said.