Trade pattern (Rubber)

Production pattern:

World natural rubber production was around 9 million tonnes in 2006-07. India is the fourth largest producer of natural rubber with a share of nine per cent in the world after Thailand, Indonesia and Malaysia. The production of natural rubber in India was 8.53 lakh MT in 2006-07. The four largest producers contribute more than 85 percent of the global production. Other contributors are Vietnam, china, Sri Lanka and the Philippines. India is at the same time the fourth largest consumer of natural rubber after China, USA and Japan.

Export pattern

The trade in natural rubber is slightly less than one eighth of the global output. The total export of natural rubber in 2004 was 10.52 lakh tonnes, out of total production of 89.76 lakh tonnes produced from 82.99 lakh hectares. The world export doubled from 5.17 lakh tonnes in 2000 to 10.52 lakh tonnes in 2004.

Quantity of export of natural rubber from different countries (Quantity in MT)

Thailand emerged as the world leader in rubber exports since 2000.  Her share in world export rose steadily from 62.5% in 2000 to 81.2% in 2004. At the same time, the share of Malaysia declined steadily from 17.8% in 2000 to 7% in 2004.  Vietnam, which produces 4.5% of world output, is another potential exporter.  ASEAN countries account for about 90% of the natural rubber exports. Hence if rubber is included for free trade or preferential tariff with Indo-Asean - FTA farmers in Kerala will have lot of problems. 

India’s export went up by ten fold from 554 tonnes in 2000 to 5403 tonnes in 2004. This was higher during 2003 (8627 tonnes). As a result, India’s share in the export of natural rubber appreciated from 0.1% in 2000 to 1.2% in 2003. However it declined to 0.5% in 2004. India so far has not taken rubber exports seriuosly as the domestic production is slightly short of rising domestic demand. Hence India's role in rubber exports is highly insignificant.

The aggregate value of natural rubber exports in the world in 2004 was $995 million compared to $436 million in 2000. Thailand alone contributed 71.6 % of the value of exports in 2004.  The next significant exporter was Malaysia. Her export share declined from 20% in 2000 to 11.2% in 2004. While India’s share was only 0.2% in 2000, it went up to 1.4% in 2003. However it declined by half in 2004 to 0.7%.

Product group-wise export of rubber and rubber products in India

Product group-wise export of rubber and rubber products in India

There had been steady decline in the share of new pneumatic tyres of rubber (HS 4011) from the historical peaks in the past. The country is still heavily dependent on this product group in its exports. The dominance of dry rubber products in the composition of exports is evident from the fact that dry rubber products constituted more than 80 per cent of the export. The decline in the share of four product lines (HS 4010, 4011, 4012 and 4016) in the post-reform phase is notable as it represents the changing composition in the export basket as underlined by the growing share of non-traditional product groups (HS 4016 and 4014).

Last updated: 10-01-08