Rubber output may go up to 9 lt in FY10

NEW DELHI: Natural rubber consumption in the country is projected to inch up to about 9 lakh tonnes this fiscal despite the ongoing economic crisis having dented demand from the tyre industry while production too may exceed last year's level. In its forecast for FY10, the state-owned Rubber Board has projected higher exports than last fiscal though imports may take a knock.

"According to our projection, natural rubber production in 2009-10 is expected to touch 867,000 tonnes compared with 865,000 tonnes last fiscal. Similarly, consumption is expected to rise to 875,000 tonnes from 866,000 tonnes during the review period," a senior board official said.

"The country may also export about 50,000 tonnes of natural rubber this fiscal compared with 45,430 tonnes in 2008-09," he said.

"However, import is expected to decline to 60,000 tonnes from 78,030 tonnes last fiscal," he added.

Natural rubber export declined by 15% to 45,430 tonnes in 2008-09 as the crisis in the global economy deepened and demand from the automobile sector contracted. The production of the rubber variety however rose by 5% to 865,000 tonnes.

The consumption of the rubber variety rose marginally to 866,000 tonnes in 2008-09 from 861,455 tonnes in the previous fiscal.

Natural rubber prices at Kottayam ��� a major trading hub in the largest producing state of Kerala ��� were quoted at Rs 8,650 per quintal as on April 3 against a peak of Rs 14,200 per quintal on August 28, 2008.