India tries to resurrect its failing rubber sector

On December 15, 2021, in Goalpara, Assam, India, latex from rubber trees is seen in a forest

Babu Joseph has been caring for rubber trees on his small farm in the state of Kerala in southern India for more than 30 years.

Before the past ten years, Kerala was home to thousands of producers like him who made a living by extracting latex from small rubber tree plantations.

The state's main cash crop once was rubber, but prices have fallen dramatically in the last ten years, he says.

It takes a lot of labor to tap rubber trees. A process that is repeated on each tree every few days involves workers making deep cuts in the bark in the early evening or early morning so that the latex can escape and be collected in buckets.

Making the proper depth cuts without hurting the tree requires some skill.

Plantations are no longer a desirable business due to the cost of paying employees to do that while prices are falling.

Many growers, including myself, have been forced to abandon their rubber plantations due to low returns and high labor costs, according to Mr. Joseph.

Babu Joseph on his plantation
Babu Joseph has witnessed numerous rubber farmers abandon their plantations.

According to data from the Rubber Board of India, the nation's rubber production reached a peak in 2013 at 913,700 tonnes.

In 2016, production had drastically decreased to 562,000 tonnes. Despite a slight recovery since then, it is still significantly below its 2013 peak.

The boom years were fueled by favorable weather and an increase in natural rubber prices, which peaked at 540 cents/kg in 2011 on the global markets.

But as Mr. Joseph pointed out, costs have plummeted; this year, they are trading at 130 cents/kg.

The demand for natural rubber in India has increased while domestic production has sputtered. The tyre industry, which has seen recent rapid growth and is anticipated to continue it, consumes about 70% of the natural rubber produced in India.

According to Rajiv Budhraja, director general of the Automotive Tyre Manufacturers Association (ATMA), "Consumption growth is expected to outpace production growth.".

"The substantial disparity between the consumption and production of natural rubber. is a major issue for the Indian rubber goods industry, he continues.

According to him, tire producers do not like having to rely on imports for such a vital component and also want to support the government's Make In India initiative.

An Indian employee walks past tyres at the JK Tyre and Industries
India's demand for rubber is being fueled by booming tyre sales.

According to Prasad Purushothama of the Rubber Board, the importation of rubber has hurt domestic producers.

He claims that domestic rubber prices are typically higher than those found on the international market. As a result, imports frequently lower prices, which discourages homegrown producers even more.

The business is working to boost domestic production. A plan to establish 200,000 hectares of new rubber plantations in Northeast India and West Bengal has been developed by four ATMA members in collaboration with the Rubber Board.

According to Mr. Budhraja, the project is going according to schedule. The Northeast of India will become a significant hub for the production of natural rubber in about four to five years. ".

Business technology has become more sophisticated.

There is also hope that technology will allow India's rubber farmers to regain their competitiveness.

The first genetically modified (GM) rubber plants, specifically adapted for the climatic conditions of Northeast India, are being grown on a Rubber Board research farm on the outskirts of Guwahati in the state of Assam.

Since rubber plants are native to the Amazon, they prefer warm, humid climates.

However, the experimental plants' genes have been altered so that they can endure in harsher climates, such as those that are hotter, colder, or drier.

According to Jessy MD, deputy director at the Rubber Research Institute of India, "GM technology is the future of rubber plantations.".

According to him, "it will add qualities to the existing cultivated clones, which cannot be done through conventional methods.".

This is crucial because Kerala, the traditional region for rubber cultivation, is experiencing changing weather.

One of the biggest issues affecting rubber farming in the future, according to Mr. Purushothama, is climate change.

The new trees are expected to allow for the expansion of rubber production into new regions.

Before the Assamese rubber trees have a significant impact on India's domestic production, they will need to undergo some evaluation.

Some rubber manufacturers are using different technology in the interim.

Chinmayan MK uses tapping machine
On his plantation, Chinmayan MK now uses tapping machines.

In his 18-acre rubber plantation in Kerala, Chinmayan MK employs machinery to tap the rubber.

Although expensive, he claims that once in use, the machines are far superior to conventional techniques.

Employees can tap rubber with the machine even if they have no prior experience. With some practice, they will be able to tap as quickly as workers using knives.

According to Mr. MK, the lack of tapping workers can be remedied by using a motorized tapping machine.

He claims that the machines have led to a 60 percent increase in output on his plantation and a 40 percent decrease in costs.

He adds that innovation is necessary to stop the decline of Kerala's rubber plantations: "At first I was hesitant, but today my entire plantation works on machines.".

Numerous plantations need to be revitalized because they have grown old. But instead of finding a way to boost production, the majority of them are selling their land.

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