Tyre sector’s share in rubber consumption set to increase
Published on Mon, Aug 18, 2008 at 08:42 | Source : Business Line
Updated at Mon, Aug 18, 2008 at 09:06
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Tyre sector’s share in rubber consumption set to increase
The share of the tyre sector in natural rubber consumption is likely to increase further vis-À-vis the non-tyre sector in the coming years, Mr Rajiv Budhraja, Director General of Automotive Tyre Manufacturers Association (ATMA), has said.
Unfortunately, as revealed by an analysis by ATMA, India's share in natural rubber re-plantations in South Asia is fast declining and a precarious situation might await rubber using industries regarding long-term natural rubber availability, if immediate steps are not taken. India's share in natural rubber re-plantation in South Asia came down to one third of what it was in 2004.
While, India's share in total natural rubber planted area in South East Asia continues to be 7.5 per cent, its share in natural rubber replanting has come down from more than 10 per cent in 2004 to 3.6 per cent in 2007.
For its analysis, ATMA studied the natural rubber plantation and re-plantation pattern in six countries in South East Asia - Thailand, Malaysia, India, Indonesia, Vietnam and Sri Lanka.
ATMA has attributed the decline in re-plantation momentum to an unprecedented rise in the natural rubber prices in the recent times. There has been a steep 65 per cent increase in prices of natural rubber over the last one year. From Rs 85 a kg in September 2007, the prices are currently ruling at Rs 140 a kg, he said.
In the recent past, hike in natural rubber prices have been directly or indirectly linked to increase in crude prices.
Although the crude prices have fallen significantly in the recent past, there is no corresponding reduction in natural rubber prices, he said.
