This document presents data on rubber production in India from 2009-2014. It shows that the rubber area and production have generally increased over this period, while average yield has decreased. Rubber consumption and imports have increased substantially while exports have decreased. The reasons for the decline in production included falling rubber prices, higher labor costs, and increased competition from cheaper synthetic rubber corresponding to lower oil prices. Government trade policies on rubber imports and duties were also examined over this period.

1. Rubber area and Tappable rubber area (in ha)
686,515
711,560
734,780
757,520
778,400
468,480 477,230 490,970 504,040 518,100
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2009-10 2010-11 2011-12 2012-13 2013-14
Rubber area (ha)
Year (April to March) Rubber area (ha) Tappable Rubber area (ha)
2009-10 686,515 468,480
2010-11 711,560 477,230
2011-12 734,780 490,970
2012-13 757,520 504,040
2013-14 778,400 518,100

2. Production (in tonnes)
Year (April to March) Production (tonne
2009-10 831,400
2010-11 861,950
2011-12 903,700
2012-13 913,700
2013-14 774,000
831,400
861,950
903,700
913,700
774,000
700,000
750,000
800,000
850,000
900,000
950,000
2009-10 2010-11 2011-12 2012-13 2013-14
Production (tonne
Production (tonne

3. Average Yield (Kg/ha)
Year (April to March) Average yield (kg/ha)
2009-10 1,775
2010-11 1,806
2011-12 1,841
2012-13 1,813
2013-14 1,629
1,775
1,806
1,841
1,813
1,629
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
2009-10 2010-11 2011-12 2012-13 2013-14
Average yield (kg/ha)
Average yield (kg/ha)

4. Consumption and Import
(in tonnes)
Year (April to
March)
Consumption
(tonne) Import (tonne)
2009-10 930,565 177,130
2010-11 947,715 190,692
2011-12 964,415 214,433
2012-13 972,705 262,753
2013-14 981,520 360,263
930,565 947,715 964,415 972,705 981,520
177,130 190,692 214,433
262,753
360,263
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2009-10 2010-11 2011-12 2012-13 2013-14
Consumption (tonne)
Import (tonne)

5. Export (Tonnes)
Year (April to March) Export (tonne)
2009-10 25,090
2010-11 29,851
2011-12 27,145
2012-13 30,594
2013-14 5,398
25,090
29,851
27,145
30,594
5,398
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2009-10 2010-11 2011-12 2012-13 2013-14
Export (tonne)
Export (tonne)

6. Reasons for decline in rubber
production

7. Sharp fall in the prices of natural rubber
The poor return and high labour cost has forced many of the
grower away from tapping.
Year (April to March)
Average price of RSS-4
at Kottayam (Rs/100kg)
2009-10 11,498
2010-11 19,003
2011-12 20,805
2012-13 19,200
2013-14 13,800
2014-15 12,450
11,498
19,003
20,805
19,200
13,800
12,450
0
5,000
10,000
15,000
20,000
25,000
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Average price of RSS-4 at Kottayam (Rs/100kg)
Average price of RSS-4 at Kottayam
(Rs/100kg)

8. Increase in import from tyre manufacturing
companies
Year (April to March) Import (tonne)
2009-10 177,130
2010-11 190,692
2011-12 214,433
2012-13 262,753
2013-14 360,263
2014-15 414,606
177,130
190,692
214,433
262,753
360,263
414,606
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Import (tonne)
Import (tonne)

9. Fall in crude oil price
Cheaper crude oil price means cheaper the synthetic rubber which is made
from petroleum products and the main competitor for the natural rubber.

10. Global economic condition
Global economic condition such as recession
affect the prices of rubber. Rubber prices had
dipped to its lowest in the past 30 years due to
reduced in demand and an increased in supply
from South East Asian countries.

11. Rubber trade policies of
2010
IMPORTS
•Import duty of rubber is “20% or Rs. 20 per kg
whichever is lower”
•Period of utilization under advance licensing
scheme for import of rubber is 18 months.
• It is entitled for benefit @2% of FOB value of
exports to all markets.

12. Rubber trade policies of 2015
 Import duty of rubber is “25% or Rs. 30 per kg whichever
is lower”.
 Period of utilization under advance licensing scheme for
import of rubber is 6 months.
 It is entitled for benefit @2% of FOB value of exports to
all markets.

13. Key Policy changes from 2010 to
2015
Import duty
Period of utilization under advance licensing
scheme.

14. Cheaper Import of Rubber Products to
hit make in India plan
All India Rubber Industries Association (AIRA) has urged
government to reconsider its decision of raising import duty on
natural rubber from 20% to 25%
India already levies one of the highest duties on import of rubber
and lowest duties on import of finished rubber goods.
Planters believe the unbrided import of natural rubber have led
to sharp drop in prices and therefore increase in import duties is a
must.
Higher Domestic prices than International prices

15. Conclusion
To make finished rubber goods competitive the prices
must be reduced.
The rubber goods manufacturers including tyre
companies are keeping prices based on natural rubber
prices of a few years back when it was 245/- kg.
Keeping high prices for their products and then
crying hoarse on import duty increase is not a fair
attitude