Rubber output exceeds demand

Rubber consumption also fell below the targeted level of six lakh tonnes to 5.92 lakh tonnes. This is the second consecutive year when consumption has been lower than production. Last year, consumption was 5.78 lakh tonnes.According to the Rubber Board, consumption had declined by 0.5 per cent during the first half of 1998-99 but picked up by two per cent in November and December. Still, during the year-end it was projected to have increased by 3.5 per cent cumulatively. Consumption was hit in 1998-99 due to tyre sector recording a negative 0.3 per cent growth up to December. However, the decline in the tyre sector was offset by growth in the non-tyre sector, which showed a growth of 4.2. The automotive tyre sector accounts for nearly 45 of the country8217;s total natural rubber consumption. During the previous fiscal, imports have been estimated to be at 23,000 tonnes, about 2,000 tonnes lower than in 1997-98. Exports during 1998-99 were expected to have increased to 2,000 tonnes from about 1,000 tonnes in 1997-98.

However, a matter of concern was a huge carryover stock of 1.91 lakh tonnes from the 1998-99 fiscal to the current financial year.

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