New Delhi, Oct 3 (IANS): India's imports of natural rubber is likely to touch $1,107 million by the end of the current fiscal as the country imported material worth about $734 mn during first nine months of 2013-14, a study by industry association Assocham said Friday.
"Growing at a compounded annual growth rate (CAGR) of about 32 percent, import of natural rubber in India in value terms is likely to touch $1,107 million by the end of the ongoing fiscal year (2014-15) as the country had imported natural rubber worth about $734 mn during first nine months of FY 2013-14," the study said.
"Imports of natural rubber in India have grown from over 81,500 tonnes to over 2.1 lakh tonnes during 2008-09 and 2012-13 thereby clocking a CAGR of about 28 percent," it said.
Indonesia alone accounts for about 42 percent of India's total natural rubber imports followed by Thailand and Vietnam that account for about 26 percent and 24 percent share in natural rubber imports into the country, noted the study prepared by the ASSOCHAM Economic Research Bureau.
"The most worrying factor is the ever-widening gap between production and consumption of natural rubber in India which is growing at a CAGR of whopping 69 percent as it crossed 59,000 tonne-mark in 2012-13 as against about 7,200 tonne in 2008-09," D.S. Rawat, secretary general of ASSOCHAM said.
"The demand-supply gap is further expected to increase by about 20 per cent while taking into account the expected growth of automobile, footwear and other sectors consuming natural rubber," he added.
It is imperative for India to immediately address the issue of rising natural rubber imports by augmenting domestic production of natural rubber, Rawat added.
As of 2012-13 the total rubber production (including both natural and synthetic) stood at over 10 lakh tonnes which included 9.13 lakh tonnes of natural rubber and the remaining comprised of synthetic variety.
While total rubber consumption (both natural and synthetic rubber) in India stood at 14 lakh tonnes in 2012-13 with natural rubber comprising a share of about 69 percent and synthetic rubber comprised 31.3 percent share.