India is grappling with a significant shortage of natural rubber (NR), as domestic production fails to meet the escalating demand, leading to a substantial increase in prices. In the fiscal year 2023-24, India’s NR production rose marginally from 839,000 tonnes to 857,000 tonnes. However, consumption surged from 1.35 million tonnes to 1.416 million tonnes, resulting in a deficit of approximately 559,000 tonnes.
This supply-demand gap has caused NR prices to soar, reaching ₹247 per kg—the highest in 15 years—up from ₹182 per kg in April 2024.
The tire industry, consuming about 70% of India’s NR, is particularly affected. Non-tire sectors, mainly comprising small and micro enterprises, are also facing severe challenges due to the price hike.
Industry Response:
The All India Rubber Industries Association (AIRIA) and the Automotive Tyre Manufacturers Association (ATMA) have jointly approached the government, seeking measures to alleviate the raw material crisis. Proposals include incentivizing domestic NR production and revising import duties to stabilize supply and prices.
This acute shortage underscores the urgent need for strategic interventions to enhance domestic NR production and secure stable import channels, ensuring the resilience of India’s rubber-dependent industries.
