Daijiworld Media Network – New Delhi

New Delhi, Jul 13: With India’s natural rubber (NR) consumption expected to hit 20 lac tonnes by 2030, the country must urgently scale up domestic production to bridge the widening supply-demand gap, said Arun Mammen, Chairman of the Automotive Tyre Manufacturers Association (ATMA).

Speaking in an interview, Mammen highlighted that in FY25, domestic NR production was just 8.7 lac tonnes, while consumption stood at 14.1 lac tonnes — leaving a deficit of over 5 lac tonnes.

“This clearly indicates the urgent need for long-term investments in plantation development, tapping, and productivity enhancement,” he said, calling rubber production a national priority given its strategic importance to sectors like the tyre industry.

To reduce import dependence, efforts are underway to expand rubber cultivation into non-traditional areas, particularly the North East. Several state governments in the region are actively supporting the initiative, Mammen noted.

He also pointed to the INROAD (Indian Natural Rubber Operations for Assisted Development) project — a first-of-its-kind public-private partnership launched by ATMA member companies including Apollo, CEAT, JK Tyre, and MRF, in collaboration with the Rubber Board of India.

Under the project, 2 lac hectares of new plantations are being developed across the North East and West Bengal. Already, over 1.25 lac hectares have come under rubber cultivation within just four years, backed by a Rs 1,100 cr commitment from tyre companies.

A further boost to production can come from tapping nearly 2 lac hectares of untapped plantations — with nearly half of that in Kerala alone. Union Commerce & Industry Minister recently flagged this potential during a consultation in the state.

However, Mammen said the rubber industry continues to face headwinds from an “inverted duty structure” that makes imports of raw material more expensive than finished goods. “Tyres can be imported at zero or concessional duty under FTAs, but natural rubber attracts a basic customs duty of 25% or Rs 30/kg, whichever is lower. This is among the highest globally and affects our competitiveness, especially when international rubber prices are low,” he explained.

Rubber trees take around 6–7 years from planting to start yielding, underscoring the need for sustained efforts.

Despite the challenges, the tyre sector has been on an aggressive investment track. “In the last three to four years alone, the industry has invested around Rs 27,000 cr in greenfield and brownfield projects,” Mammen said. As per a PwC Vision Document, the industry is projected to grow at a CAGR of 11–12% till 2047.

With demand rising and global dynamics shifting, India’s journey towards rubber self-sufficiency is both an economic necessity and a strategic imperative.