India’s Natural Rubber Shortage

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Context:

India is currently facing a substantial deficit in natural rubber production, which falls short of meeting the demand by about 550,000 tonnes.

Relevance:

GS III: Agriculture

Dimensions of the Article:

Rubber is a flexible material that changes shape under pressure but quickly returns to its original form once the pressure is removed.
Rubber can be either natural, derived from latex found in certain plants, or synthetic, created through industrial processes using polymers like isoprene.

Sources of Natural Rubber: Primarily obtained from the latex of rubber trees, it includes compounds such as proteins and alkaloids.
Synthetic Rubber Creation: Manufactured through various chemical synthesis methods.

Status: India ranks as the third-highest producer and fourth-largest consumer of natural rubber globally.
Leading Producers: Kerala tops the production in India, followed by Tripura.

Exports: During 2022-23, India exported 3,700 tonnes of natural rubber, mainly to the USA, Germany, UAE, UK, and Bangladesh.
Imports: Significant imports of 528,677 tonnes were recorded, coming from countries like Indonesia, Thailand, China, South Korea, and Japan.

Thrives in a tropical climate with temperatures between 20°-35°C.
Best grown in loamy or laterite soils with excellent drainage, needing over 200 cm of rainfall annually.
Production is labor-intensive, requiring a substantial workforce.

Production vs. Consumption: Despite a slight increase in production, consumption outpaces supply significantly.
Industrial Usage: 70% of natural rubber is used by the tyre industry, stressing the supply further.
Dependence on Imports: High reliance on imports due to inadequate domestic production, with major imports coming from Vietnam and Indonesia.
Customs and Taxation: Imported natural rubber faces a 25% customs duty or Rs 30 per kg, with latex products for medical use attracting much lower duties, leading to an inverted duty structure.
Supply Disruptions: Political and environmental issues in supplier countries like Bangladesh and local monsoon patterns significantly affect supply stability.

Introduced by the Ministry of Commerce & Industry in 2019.
Foundation of the Policy: Developed from both short-term and long-term strategies created by a dedicated Task Force to address challenges in the rubber sector.
Main Elements: The policy encompasses initiatives for new plantations, support for rubber growers, enhancing processing and marketing, addressing labor shortages, and promoting both local and international trade. It also focuses on integrated efforts across different government levels, research initiatives, and considerations related to climate change and the carbon market.
Execution: Managed by the Rubber Board under the Sustainable and Inclusive Development of Natural Rubber Sector framework, spanning from 2017-2018 to 2019-2020.
Development Actions: Includes financial and technical support for planting, distribution of high-quality planting materials, establishment of support forums for growers, and comprehensive training and skill development programs.

Support Enhancement: Amplifying subsidies and financial aid for new plantings and replanting efforts.
Training Improvement: Expanding educational programs to enhance cultivation methods and overall productivity.
Research Investment: Increasing investment in research for developing high-yield and disease-resistant rubber strains, supported by government-backed institutions.
Public-Private Partnerships: Encouraging cooperative investments between governmental bodies and the private sector for the development of rubber plantations and processing facilities.

-Source: Times of India