According to a report by All India Rubber Industries Association (AIRIA), the non-tyre rubber sector, a USD 2-billion industry is set to double exports by 2025. The global rubber market, currently valued at approximately $212 billion, is also expected to expand within the same timeline.
To achieve this growth, the Indian government must ensure that the terms of the Free Trade Agreements (FTAs) support Micro, Small and Medium Enterprises (MSMEs) in increasing rubber exports. With MSMEs playing a vital role in India’s economy, FTAs should be tailored to address specific concerns, demands, and barriers that these businesses may encounter when trading internationally.
All India Rubber Industries Association (AIRIA)
The All India Rubber Industries Association is a not-for-profit organization serving the Indian rubber industry. Its main objective is to protect and promote the interests of this industry.
Key Features and Cultivation of Rubber
Natural rubber is an organic compound obtained from the latex of several tropical trees, mainly Hevea brasiliensis. This tree has an economic life span of about 32 years. The rubber is derived from various sources, including the Pará rubber tree, vines in the Congo, and dandelion milk.
The cultivation of these trees requires well-drained, weathered soils with consistent rainfall, a temperature range of 20 to 34°C, ample sunshine, and absence of strong winds.
Applications of Rubber
Rubber has a wide range of uses, from erasing pencil marks to manufacturing tyres, tubes, and numerous industrial products. Natural rubber, preferred over synthetic rubber for its high tensile strength, vibration dampening properties, and tear resistance, is crucial for the construction and automobile industries.
The growth of the automobile market worldwide is anticipated to boost the demand for natural rubber production. Simultaneously, demand for products made from latex, such as catheters, gloves, and belts, will also aid in the expansion of the rubber market.
Global Rubber Production and Distribution
As per the Food and Agricultural Organisation Corporate Statistical Database (FAOStat) of 2019, Thailand is the largest rubber producer globally, followed by Indonesia, Malaysia, India, and China.
Status of Rubber Production in India
According to FAOStat 2019, India ranks fourth in the world’s largest producers and consumers of rubber. Most of the country’s rubber consumption comes from the transportation sector, followed by the footwear industry.
In the fiscal year 2020, India exported over 12,000 metric tons of natural rubber, mainly to Germany, Brazil, the United States, and Italy. The export products included automotive tires and tubes, footwear, pharmaceutical goods, hoses, coats, and aprons.
Rubber cultivation in India, initiated on a commercial scale in 1902, contributes significantly to the country’s economy. Kerala, the leading producer of natural rubber in India, primarily cultivates rubber in districts like Kottayam, Kollam, Ernakulam, and Kozhikode. Other rubber-producing states include Tamil Nadu, Karnataka, Tripura, Assam, Andaman and Nicobar, and Goa.
India’s Rubber and Tea Boards: An Overview
The rubber and coffee boards, established under their respective Acts, operate under the Ministry of Commerce and Industry. These statutory bodies are responsible for promoting their respective industries. The rubber board is headquartered in Kottayam, Kerala, and the coffee board in Bengaluru.
Similarly, the Tea Board, established under the Tea Act of 1953, is a government agency responsible for promoting the cultivation, processing, and trading of tea. Its headquarters is situated in Kolkata. On the other hand, the Tobacco Board, headquartered in Guntur, Andhra Pradesh, is tasked with developing the country’s tobacco industry.
