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 March 2026, revealing a market that turned external pressures into clear price gains. While February had hinted at shifting dynamics, March provided proof of the industry’s core strength, with prices rising across all major grades and trading hubs despite an unusually challenging global environment. A 3.4 percent drop in monthly output and a dramatic 42.51 percent spike in Brent crude prices allowed natural rubber to advance rather than retreat.

Benchmark grades recorded widespread increases. In Kuala Lumpur, SMR-20 reached an average of USD 2.04 per kilogramme, while Bangkok saw STR-20 climb to USD 2.20 and RSS-3 jump to USD 2.56 per kilogramme. Kottayam’s RSS-4 averaged USD 2.35, and centrifuged latex in Kuala Lumpur rose sharply to USD 1.72 per kilogramme. Futures markets echoed the trend, with Shanghai’s May contract averaging CNY 16,662 per tonne and Singapore’s June contract closing at USD 1.95 per kilogramme.

The supply situation tightened considerably. Global March production is forecast at 786,000 tonnes, with Thailand’s output falling to 164,000 tonnes as southern growing regions endured temperatures of 42 to 43 degrees Celsius and rainfall up to 69 percent below normal levels. These punishing conditions sent a clear message that the market can absorb demand without chaotic price swings, a sign of a maturing commodity sector.

Demand told a similarly positive story. China’s natural rubber consumption surged from 446,000 tonnes in February to 610,000 tonnes in March, supported by a manufacturing PMI of 50.4, a 74.4 percent monthly rise in vehicle output, and a 130 percent annual leap in new energy vehicle exports. Chinese imports jumped 39.03 percent month-on-month to 629,800 tonnes, while Vietnam, Malaysia and Thailand boosted exports by 47.34 percent, 13.73 percent and 8.3 percent, respectively.

The oil market further strengthened natural rubber’s competitive edge. With Brent crude averaging over USD 101 per barrel and peaking at USD 126.69 on 31 March, synthetic rubber became significantly less cost-effective, giving tyre makers a strong incentive to favour natural rubber. Policy moves also bolstered confidence, including Malaysia’s replanting aid increase to RM 20,000 per hectare and a new Indonesian research partnership on high-yield rubber tree genetics.

Looking ahead to the second quarter, the market enters the seasonal low-yield period with firming demand. New energy vehicle growth across Asia, an elevated oil floor, replanting investments and tightening supply all point to constructive pricing. Risks like trade disputes, weather extremes and geopolitical tensions remain, but March data shows an industry turning uncertainty into opportunity.

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Sailun Group, a prominent player in the global tyre industry, has taken a leading role in advancing sustainable natural rubber practices. As a core raw material for tyre manufacturing, natural rubber requires ecological protection and a stable supply, both essential for the sector’s high-quality development. In 2025, the company, as a member of the Global Platform for Sustainable Natural Rubber (GPSNR), initiated a project focused on sustainable livelihoods and ecological education for smallholders in eastern Thailand under the GPSNR Shared Investment Mechanism.

This initiative unites strategic partners across the natural rubber value chain, including the Rubber Authority of Thailand’s Rayong office and Save the Children Thailand. Through multi-stakeholder collaboration, the project aims to foster a more sustainable natural rubber ecosystem. Recently, Sailun Group invited GPSNR Chief Executive Officer Stefano Savi and his delegation to Thailand for a field visit to review the project’s interim achievements, reflecting the company’s ‘eco+’ sustainability strategy and its active role in global governance for sustainable natural rubber.

Eastern Thailand’s natural rubber industry supports millions of smallholder households, and the project directly addresses the needs of 500 such farmers. Targeted training programmes have been delivered on environmentally responsible tapping techniques and regulatory compliance, including guidance on the European Union Deforestation Regulation. An innovative consultation network comprising one central hub, eight fixed stations and five mobile units now provides ongoing support on policy interpretation and practical problem-solving.

A structured and replicable knowledge system has been developed, including training materials on low-impact tapping and compliance. Special emphasis is placed on encouraging women and young people to participate, promoting intergenerational knowledge transfer. During the visit, the delegation held technical discussions with Rayong officials on sustainable tapping and rubber tree management, inspected standardised production lines and logistics facilities and reviewed the consultation stations, praising the integrated technology, services and compliance support model.

To address challenges such as improper tapping and soil degradation, five GPSNR demonstration plots have been established. Smallholders receive free organic soil improvement packages and professional tapping tools, alongside systematic training on sustainable soil management. The delegation observed pH monitoring systems and noted improvements including reduced soil acidity and better growing conditions. Direct engagement with farmers provided insights into practical challenges, and the delegation commended the project’s pragmatic approach to strengthening ecological cultivation and long-term productivity.

Beyond livelihood improvements, the project prioritises education through infrastructure upgrades at three schools attended by rubber farmers’ children. In partnership with Save the Children Thailand, ecological education corners with tailored curricula and drawing competitions have been set up. A scholarship programme supports disadvantaged students. The delegation visited Rayong Guanghua School and Banraijandee School, reviewing improvements and awarding scholarships, while discussions explored future collaboration on integrating sustainable natural rubber development with children’s ecological education.

Since implementation began, notable interim results have been achieved across multiple rubber‑producing communities. Smallholders’ sustainable production capabilities have significantly improved, while more children engage with nature and understand the natural rubber industry. This dual‑impact model of economic empowerment and environmental stewardship guides future efforts. Sailun Group will continue leveraging its industry leadership and the GPSNR platform to deepen collaboration with partners, research institutions and non‑profits, contributing to biodiversity conservation, supply chain resilience and high‑quality sustainable development across the global tyre and natural rubber industries.

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Shin-Etsu Chemical has announced a sweeping price revision for its entire range of silicone products, effective for all shipments from 1 May 2026. The adjustment applies to every product handled by the company’s Silicone Division, with increases set at a minimum of 10 percent. Actual revision rates will vary depending on the specific product category.

The decision follows recent developments in the Middle East, which have triggered sharp surges in crude oil and naphtha prices. This has led to a steep rise in the cost of oil-derived raw materials. Additionally, Shin-Etsu Chemical is confronting higher expenses related to manufacturing energy, product containers, packaging materials and logistics, all of which have contributed to the need for a price correction.

Despite exhausting all possible internal measures to reduce manufacturing costs, the company concluded that these efforts alone cannot absorb the mounting cost pressures. Shin-Etsu Chemical is now committed to fully communicating the situation to its product users and securing their understanding of the necessary selling price revisions.

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The Association of Natural Rubber Producing Countries (ANRPC) recently participated in a Hari Raya Open House event. The gathering was organised by Malaysia’s Rubber Development Division, which falls under the Ministry of Plantation and Commodities. This occasion allowed the ANRPC to connect with important figures within the natural rubber sector. By bringing together various industry partners, the open house successfully created an atmosphere of goodwill and strengthened existing relationships.

The ANRPC has conveyed its genuine gratitude to the event’s hosts for their warm reception and thoughtful organisation. The association acknowledged the importance of uniting stakeholders in such a meaningful celebration, which helps reinforce shared goals and collaborative spirit across the sector.

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