Natural rubber imports more than double on tyre demand.

New Delhi: India’s natural rubber import more than doubled in 2009-10 on increased consumption while domestic production fell by nearly 4%, according to the latest data released by the Rubber Board on Tuesday.

Imports were up by 118.7% in 2009-10 at 1.7 lakh tonne compared to 0.78 lakh tonne in 2008-09 on increased consumption by tyre makers. The total consumption in FY’10 was at 9.3 lakh tonne, a 6.8% growth over 2008-09.

India’s natural rubber exports, however, fell by 49.4% to 0.24 lakh tonne in 2009-10 compared to 0.47 lakh tonne in the 2008-09 fiscal.

Attributing the growth in consumption to the demand from tyre sector, which led to higher imports as well, the Board said that it was up due to capacity expansion of Ceat, JK and Bridge Stone Tyres and new plants installed by Birla, Apollo and TVS Sri Chakra Tyres.

“The trend (growth in consumption) will continue next year also,”it said.

Meanwhile, India consumed 0.79 lakh tonne of natural rubber in March 2010, up from 0.74 lakh tonne in the same month last year. Domestic production and imports also rose to 0.50 lakh tonne and 0.10 lakh tonne, respectively. Exports in March 2010 stood at 5,615 tonne as against 1,962 tonne in the same month last year.

“The export of natural rubber during March, 2010 increased as a result of high price prevailed in the international market during the first fortnight of the month,”the Board said.

Source : Financial Express