India needs to increase the area under rubber cultivation on a war footing to meet the domestic demand, reduce the dependence on imports, and restrict the outgo of foreign exchange, urged Dr Sawar Dhanania, Chairman, Rubber Board.

NR production in India will not be sufficient to meet the consumer industry's demands as consumption is expected to reach 1500,000 tonnes by 2025-26. Imports presently meet the production-consumption gap, and that involves a huge amount of foreign exchange outgo, said Dr Dhanania during his presidential address at the 181st meeting of the Rubber Board held at Kottayam.

As per Dr K N Raghavan IRS, Executive Director, NR production in the country improved to 775,000 tonnes during 2021-22 compared to 715,000 tonnes during 2020-21, recording a growth of 8.4 percent compared to an increase of 0.4 percent registered during the previous year. An increase in yield, tappable area and area tapped during the year contributed to the rise in NR production.

India is already exploring non-traditional areas, including North East and traditional regions, to increase rubber cultivation. The                             

Board has identified a vast stretch of land in North East and West Bengal for rubber cultivation.

Under the'NE-MITRA project, ATMA and Rubber Board signed an MOU to develop 2 lakh hectares of rubber plantations in North East India with an approved outlay of INR 10 billion and spend INR one billion for quality improvement of rubber produced. Meantime, the efforts for extra income generating activities like beekeeping, intercropping etc., should be continued. Dr Raghavan added that promoting the rubber wood industry and carbon trading is the need of the hour to make a green environment and bring sustainability to the rubber sector.     

The area under rubber during 2021-22 was 826,660 ha. Though the tappable area under rubber was 718,800 ha during 2021-22, only 526,500 ha (73.2 percent) has contributed to the NR production during the year. The average yield, measured in terms of production per hectare of the tapped area increased to 1,472 kg/ha in 2021-22 from 1,442 kg/ha in the previous year.

India consumed 1,238,000 MT of NR in 2021-22, an increase of 12.9 percent from 1,096,410 MT consumed in 2020-21. The auto tyre sector registered 15.9 percent growth during 2021-22, against 3.2 percent recorded during 2020-21. At the same time, the general rubber goods sector registered 5.6 percent growth during 2021-22 compared to a high negative growth of 16.4 percent recorded during 2020-21. Auto-tyre manufacturing sector accounted for 73.1 percent of the total quantity of NR consumed in the country during 2021-22. The projection of NR production and consumption for 2022-23 is 850,000 tonnes and 1290,000 tonnes, respectively.

Import of NR increased to 546,369 tonnes during 2021-22 compared to 410,478 tonnes during 2020-21. 60 percent of the import was through duty paid channel. 87.5 percent of import was in the form of block rubber. The primary reason for importing huge quantities of this commodity is the gap between the quantity of NR produced within the country and that required by the consuming industry.

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The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for February 2026, detailing a period of significant market activity influenced by geopolitical tensions, macroeconomic changes and shifting supply-demand dynamics within the global natural rubber sector.

As per the report, global natural rubber production for 2026 is forecast to reach 15.324 million tonnes, a 2.2 percent increase from the 14.996 million tonnes recorded in 2025. February output alone is projected at 994,000 tonnes, marking a 3.4 percent year-on-year rise due to favourable weather and higher rubber prices. Despite this overall growth, production trends vary among member nations. While Thailand is expected to remain the top producer, Indonesia and Vietnam face short-term constraints from structural and agronomic issues. Meanwhile, Malaysia is advancing efforts to restore abandoned plantations, with the Rubber Production Incentive activated in Sarawak and Sabah and the Malaysian Rubber Board targeting the rehabilitation of 4,137 hectares of idle land in 2026.

Physical and futures markets saw notable price increases across major grades in February. In Kuala Lumpur, SMR-20 averaged USD 2.01 per kilogramme, a 5.13 percent monthly gain, while STR-20 in Bangkok rose 5.12 percent to USD 2.11 per kilogramme. Sheet rubber grades also strengthened, with RSS-3 increasing 7.84 percent to USD 2.35 per kilogramme and RSS-4 in Kottayam surging 10.38 percent to USD 2.34 per kilogramme. Centrifuged latex in Kuala Lumpur closed the month at USD 1.61 per kilogramme. Futures mirrored this firming trend, as the Shanghai Futures Exchange May 2026 contract averaged roughly 16,508 CNY (approximately USD 2,388) per tonne and the SGX contract averaged USD 1.92 per kilogramme, supported by strong demand and tightening supply expectations ahead of the seasonal low-yield period from February to May.

Crude oil volatility added further complexity, with Brent averaging USD 70.89 per barrel in February – up 6.43 percent from January – before spiking to approximately USD 104 per barrel in early March following military actions in the Middle East and the closure of the Strait of Hormuz, a conduit for nearly 20 percent of global oil supply. This has introduced a risk premium with implications for synthetic rubber competitiveness and natural rubber demand. Currency shifts also play a role, as the Malaysian Ringgit appreciated modestly to 3.89 MYR per USD and the Thai Baht strengthened to around 31.08 THB per USD by late February, affecting trade competitiveness. Looking ahead, rising automotive production, especially of new energy vehicles in China, India and Southeast Asia, is expected to sustain demand and support prices. However, risks persist from US-China trade tensions, Middle East geopolitical instability, weather uncertainties during the low-yield season and currency fluctuations tied to US monetary policy, all of which could disrupt supply chains and export revenues.

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Tokyo Zairyo Co., Ltd., a wholly owned subsidiary of Zeon Corporation, marked a significant milestone in November 2025 by establishing a new branch office in Chennai, Tamil Nadu, India. Following the completion of all necessary preparations, this location has now commenced full-scale operations. The move represents a deliberate effort to broaden the company’s commercial reach across the Indian market while simultaneously constructing an organizational structure capable of responding with greater agility to the evolving and increasingly diverse requirements of its customers.

This southern expansion comes approximately 15 years after the company first established its Indian subsidiary, Tokyo Zairyo (India) Pvt. Ltd., with an office in Gurugram, Haryana, in 2011. By positioning a second office in Chennai, the firm now operates a coordinated network spanning the northern and southern regions of the country. Close collaboration between the two locations is intended to strengthen information services and enhance user support, leveraging both internal capabilities and external partnerships to better serve Japanese automotive parts manufacturers and processors operating throughout India.

Through this dual-office structure, Tokyo Zairyo is poised to advance its core business of purchasing and selling a broad spectrum of materials, including rubber, resins and elastomers. The synchronised operations in Gurugram and Chennai enable the company to deliver more responsive support, ensuring that clients across the Indian automotive supply chain benefit from efficient service and a reliable supply of essential materials.

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Kuraray Co., Ltd. has announced a comprehensive global price adjustment for its portfolio of Liquid Rubber products and ISOBAM alkaline water-soluble polymer. These changes, which are set to take effect on 16 April 2026, will see prices rise by at least USD 2 per kg.

The driving forces behind these significant pricing actions are multifaceted, rooted in substantial disruptions to global supply chains. These disruptions are largely attributed to the ongoing conflict in the Middle East, which has had a cascading effect on logistics. Compounding this issue are the sharply rising costs associated with transportation and essential raw materials.

This strategic move is essential for the company to maintain operational stability and continue the supply of Liquid Rubber and ISOBAM amidst the volatile market conditions.

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German chemical group WACKER has announced a price hike across its silicones product range, responding directly to significant upheavals in international commodity markets triggered by the recent military conflict in the Middle East. This geopolitical instability has created pronounced distortions throughout the supply chain, leading to a sharp escalation in the costs of essential inputs. The company is experiencing substantially higher prices for energy as well as for various other raw materials and logistics services.

To address this challenging economic landscape and offset the considerable burden of increased raw material and transportation expenses, the chemical group is implementing price adjustments effective 1 April 2026. The updated pricing will be communicated to the customers accordingly. This strategic move is essential for the company to maintain operational stability and continue delivering its products reliably amidst the volatile market conditions.

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