Market and product

India's rubber production is decreasing.At this rate India may slip below China in global rubber production rankings this year.

Low prices and labour crisis—definitely not an 'all is well' phase for the country. India has suffered severe setback in the rubber sector as indicated by the latest production figures released by the Rubber Board.

An Economic Times article I read the other day says India may slip below China in global rubber production rankings hitting the sixth position. The present ranking shows that India is placed below Thailand, Indonesia, Malaysia and Vietnam.

India produced 2,81,000 tonnes of natural rubber in the six months to September 2015. This figure does not allow the country to sit back relaxed as it indicates a decline of 15 per cent from the same period a year ago.

What is the reason behind the drop in rubber production? India's rubber production has been treading the downward path for sometime. Last year's production of 6.55 lakh tonnes is considered to be the worst in 12 years.

There is considerable drop in rubber tapping by farmers in Kerala. Small farmers here have abandoned tapping as they cannot afford the labour costs on account of the falling rubber prices.

The labourers resorted to strike recently in Kerala demanding wage hike. Experts, as quoted by The Economic Times, argue that this wage strike has affected the functioning of big rubber estates in Kerala.

Monsoon also contributed a fair share to this already depressing scenario. Rubber tapping in Kerala have been badly affected by the delay in arrival of rains and the rise in the heat waves.

The price support scheme announced by the Oommen Chandy government in Kerala failed to help the farmers who are in distress due to the rubber price crash. Kerala, the southern state, produces 90 per cent of India's natural rubber.