Northeast tightens its hold on rubber as tyre majors scout beyond Kerala

Government initiatives and industry support to expand natural rubber plantations in India’s northeastern states have started showing results, with the region’s share in total rubber production more than doubling over the last decade. Data from the All India Rubber Industries Association (AIRIA) show that Tripura, Assam and Meghalaya together accounted for 17.5% of total natural rubber output in 2023–24, up from just 7.8% in 2013–14.

Tripura’s production has more than doubled to 91,500 tonnes from 39,000 tonnes in ten years. Assam’s output has jumped to 46,500 tonnes from 13,600 tonnes, while Meghalaya has reached 11,775 tonnes, up from 7,570 tonnes during the same period. Over this decade, the country’s largest producer, Kerala, saw production fall from 6.5 lakh tonnes to 6.1 lakh tonnes.

India’s total domestic production of natural rubber stands at about 8.5 lakh tonnes. The Northeast now contributes approximately 1.5 lakh tonnes. “Given that India’s total rubber requirement is 14.5 lakh tonnes, tyre companies are looking at Northeast for additional sourcing. Production in Kerala has reached its peak, so Northeast has potential for expansion,” said Shashi Singh, president of the All India Rubber Industries Association.

“Natural rubber production in Tripura and Assam has risen in the last couple of years, and the quality has also seen some improvement, leading to higher offtake by the tyre industry and Apollo Tyres,” said Sunam Sarkar, president and chief business officer of Apollo Tyres.

Although the region has not yet reached the peak plantation area planned by the government, sourcing from the Northeast is rising. “This is our fifth year in reckoning and out of 2 lakh hectares, which was the layout of the plan, we are at 70,000–75,000 hectares. We are increasing our buying from Northeast apart from buying from the traditional (plantations) down south,” said Anshuman Singhania, managing director of JK Tyre.

According to the Automotive Tyre Manufacturers Association (ATMA), under the Indian Natural Rubber Operations for Assisted Development (INROAD) project, 1.25 lakh hectares have been brought under new rubber plantations during the first four years (FY22–25). The plantations span 94 districts across the Northeast and parts of West Bengal.