Natural rubber production in the country dipped by 1.8 per cent in August. Terming the fall as marginal, sources in the Rubber Board said that the production was up from July, while it recorded a small fall over the corresponding month of last year.

Persistent rain during August impacted tapping operations.

This was more particularly so in the major rubber-growing districts of Kottayam, Idukki, Pathanamthitta and Ernakulam in Kerala.

Protection and sustenance of the tree is of paramount importance to the farmer and he would not pursue tapping operations if it would affect the stem of the rubber trees.

Tapping operations

However, extensive rain guarding has helped to undertake tapping operations even during monsoon showers and production was a notch lower than same period a year ago.

With prices continuing to remain attractive, the tapping intensity exhibited by farmers has increased.

Prices which were ruling around Rs 160 a kg levels last year are now holding above Rs 200 this year.

This has provided the right incentive to the farmer to continue with his tapping operations irrespective of the rain.

The continuous rain seems to be abating this month and Rubber Board sources expect a pick up in production to continue in the coming months as well.

The growth in production is expected to sustain in October, November and December, which is the peak tapping season for rubber production.

Consumption

Against 82,000 tonnes in July, consumption of natural rubber dipped by 6.1 per cent to 77,000 tonnes in August.

Rubber stocks available in the country at the end of August is estimated at 2,66,081 tonnes.

Despite increased capacity being added by the tyre industry, rubber consumption will continue to be guided by sales trends in the automobile industry.

For the moment, it does not seem likely that the spirited growth in automobile sales of last year will be revived in the coming couple of months.

With production during the April-August period perking up by 4.5 per cent over last year, Rubber Board officials are confident that the production targets set for the year will be achieved.

The Government has set a production target of 9,02,000 tonnes for 2011-12, while consumption is expected to grow to 9,77,000 tonnes.

Related Topics