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Concern over slow growth in State rubber industry

KOCHI: Rubber industry has not grown adequately in Kerala despite the existence of large rubber plantations in the State, said K.T. Thomas, president of the All India Rubber Industries Association.

There was immense scope for development of the industry in the State. Rubber manufacturing industries were shifting their base from Europe to Asia. China benefited from this shift, but according to him, India, being a democratic country, was more suitable for setting up rubber-based industries. While the per capita consumption of rubber in developed countries was 12 kg, it was only 1 kg in India, he said. The highest consumption was registered in the USA, followed by China. India remained fourth.

Rubber industry was a labour-oriented one. With its rich labour force, India remained an ideal country for the growth of the industry. In fact, India had the capability to become the leader in the industry, he said.

Increase in the price of natural rubber affected the small and medium industries in the sector.

A cluster approach would be ideal for the units to tide over the present situation. Such an approach had already begun in various manufacturing centres.

The price of rubber remained volatile due to a variety of reasons. Nobody could predict the price trend, according to him. However, he did not foresee an immediate reduction in prices of natural rubber.

Speculators holding stock had its impact on the price of the commodity. Futures trade had affected the availability of rubber, according to him. This apart, there was also the possibility of delivering damaged commodity, as natural rubber sheets get damaged if kept over three months.

There were instances of several people committing suicide in a north Indian town after they got prices much below their expectations in the futures trade in rubber, he said.

Rubberised roads had been found to be more durable, but the higher cost had been a deterrent, he said.

The association would organise an India Rubber Expo in Kolkata in January 2009. It would be one of the largest exhibitions in the rubber industry in the world, he said.

The expo was last held in Chennai in which 250 exhibitors from around the world participated.

The association had signed a memorandum of understanding with the Confederation of Indian Industries for jointly organising the expo.

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