Need to Accelerate Domestic Natural Rubber Production

Why in news: According to Arun Mammen, Chairman of the Automotive Tyre Manufacturers Association (ATMA), India must urgently boost natural rubber production to meet rising demand, particularly in the tyre industry.

Key Highlights:

• Projected Demand by 2030:
  India’s natural rubber consumption is expected to reach 20 lakh tonnes.

• Current Deficit (FY25):

  • Production: 8.7 lakh tonnes

  • Consumption: 14.1 lakh tonnes

  • Deficit: Over 5 lakh tonnes

• Strategic Priority:
  Rubber is vital for multiple sectors; boosting plantation development, tapping efficiency, and productivity is essential.

• Non-Traditional Cultivation Expansion:

  • Northeast India and West Bengal are key focus areas.

  • State governments in the Northeast are actively supporting rubber cultivation.

• Public-Private Initiative – INROAD Project:

  • Indian Natural Rubber Operations for Assisted Development (INROAD)

  • Led by ATMA members (Apollo, CEAT, JK Tyre, MRF) in partnership with the Rubber Board

  • Goal: Develop 2 lakh hectares of new rubber plantations

  • Progress: 1.25 lakh hectares already cultivated

  • Investment: ₹1,100 crore committed

• Untapped Potential:
  Around 2 lakh hectares of existing plantations remain untapped, including 1 lakh hectares in Kerala.

• Policy Challenge – Inverted Duty Structure:

  • Natural rubber: 25% Basic Customs Duty (BCD) or ₹30/kg (whichever is lower)

  • Tyres (finished products): Can be imported at zero or concessional duty under FTAs

  • This structure hurts domestic manufacturers and makes imports cheaper than domestic production.