The production and availability of natural rubber in India is facing huge disruption, despite a constant price hike, small-scale players are under the threat of extinction on the back of several factors. In fact, the All Kerala Small Scale Tread Rubber Manufacturers’ Association increased the price of tread rubber and allied products by INR 12 per kg on the back of hike raw material prices and overhead expenses. But this too seems to be a not a sustainable measure.

In a conversation with Tyre Trends, P P Subair, President, of All Kerala Small Scale Tread Rubber Manufacturers’ Association states that the prices of rubber are going up by almost INR 3-4 per kg daily. It is becoming so dynamic that the prices keep varying throughout the day.

This, he attributes, is on the back of several factors, which include the availability of natural rubber becoming scarce on the back of adverse weather conditions (heavy rain); then there is the reduction in imports due to the non-availability of containers from Thailand and other countries.

Furthermore, the reduction in the availability of labourers, especially in the key state of Kerala where only 30 percent labourers are available (compared to demand) for rubber taping. According to Subair, almost 80 percent of the natural rubber production in India happens in Kerala, with the rest of India including Karnataka, Maharashtra and other states contributing the remaining 20 percent.

“The young generation is not interested in working in this profession, even if people from other states are called for working on rubber tapping, it will still take a couple of months for them to be efficient,” shares Subair. This has also resulted in a significant number of players shutting shop. In fact, Subair states the number of members in the All Kerala Small Scale Tread Rubber Manufacturers’ Association has come down from 1,000 to 300.

He explains that as on 8 August 2024, the price of tread rubber is around INR 250 per kg, yet there is no availability for the raw material.

“Everybody is searching for rubber sheets, but the same problem exists in other states also.”

He claims that at present 75 percent of tread manufacturers are from Kerala, while the remaining are based in Karnataka, Maharashtra, Gujarat, and a few other places. While there are some other states in Northeast India, the quality is not similar, as well as the available quantity is very limited in comparison to the demand in the country.

Subair expects that there may be some relief in the next 2-3 months, in addition to the relief post-monsoon.

But he also expresses concern about the existential crisis looming across the country for the small-scale industry.

“All over India, the small-scale players are suffering in the tread rubber sector. In addition to the challenges, the removal of exemptions for small-scale players in the taxation bracket, we are now faced with 18 percent GST which has impacted the financial health of many players. This has led to wafer-thin to almost no margins for businesses. It has become very difficult to grow or expand one’s business,” he shares.

Then there is the indirect impact due to the crude oil prices on the back of geo-political reasons.

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Germany's rubber industry continues to face significant headwinds, with fresh data from the German Rubber Industry Association (wdk) revealing a persistent downturn. The figures show employment falling for the fifth year in a row, while production levels have declined for the fourth consecutive year, underscoring the sector's struggle to regain its footing.

The association attributes this stagnation to waning enthusiasm for German rubber goods in both domestic and international markets. Michael Berthel, wdk Chief Economist, described a fundamental shift in procurement behaviour, even within Germany. He noted that purchasing decisions are now driven almost exclusively by price, a stark departure from the historical emphasis on quality and reliability. This change has opened the door to intense international cost competition, placing immense pressure on Germany's medium-sized suppliers. Berthel highlighted that prohibitive domestic costs related to energy, bureaucracy, taxation and labour make it nearly impossible for these firms to compete effectively. Consequently, many are compelled to relocate their investments abroad as a necessary escape from these local burdens, even though their preference would be to maintain and revitalise their operations within Germany after years of strategic transformation.

Against this backdrop, wdk President Michael Klein issued an urgent appeal to the federal government. He acknowledged that the broader struggles of German industry are well documented but stressed the immediate need for decisive political intervention. Klein called for concrete measures to stimulate demand and bolster the nation's competitive edge within Europe without further delay. He warned against allowing the rubber sector to decline quietly, emphasising its critical role in essential areas such as healthcare, infrastructure, security and mobility.

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Punia Metox Private Limited has commenced production at a new manufacturing facility in Thottambedu, Tirupati, Andhra Pradesh, with operations starting on 12 February 2026.

The plant has an initial production capacity of 12,000 tonnes a year. Its structural design allows capacity to be doubled within four to six months, providing scope for rapid scale-up as demand grows, the company said.

Punia Metox said the facility has been equipped with modern technology to support operational and energy efficiency, safety, sustainability and consistent product quality. The company added that the plant has been designed to enable smooth and seamless operations from the outset.

The expansion forms part of Punia Metox’s strategy to align capacity growth with customer requirements and strengthen its position as a long-term supply partner. The company said the new unit reflects its focus on customer satisfaction, ethical business practices and value-based growth.

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Cabot Corporation said it can now produce circular reinforcing carbons in the Asia-Pacific region after validating manufacturing capability at its plants in Cilegon, Indonesia, and Tianjin, China.

The materials are produced using tyre pyrolysis oil derived from end-of-life tyres and an International Sustainability & Carbon Certification (ISCC) PLUS mass-balance approach. With the addition of the two Asian sites, Cabot said it now has circular reinforcing carbon production capacity across Asia, Europe and the Americas.

Tyre manufacturers are pursuing targets to increase sustainable material use in tyre production, with many aiming for 40 per cent by 2030 and 100 per cent by 2050, the company said. Cabot’s circular reinforcing carbons are designed as a drop-in replacement for conventional carbon black, allowing manufacturers to increase sustainable content without affecting tyre performance.

Aatif Misbah, Vice-President and General Manager for sustainable solutions in Cabot’s reinforcement materials segment, said: “This achievement reflects our deep commitment to delivering sustainable solutions across Asia Pacific and globally. Scaling our circular reinforcing carbon capabilities helps strengthen our role as a trusted partner to the tire industry, while helping to drive meaningful sustainability progress. Looking ahead, we remain focused on supporting our customers’ evolving needs and helping enable a more sustainable future.”

Cabot’s facilities in Ville Platte, Louisiana; Mauá, Brazil; and Valasske Mezirici in the Czech Republic had previously demonstrated circular reinforcing carbon production capability. The products are ISCC PLUS-certified and marketed under the recovered category of Cabot’s EVOLVE Sustainable Solutions platform.

The company said it has 13 ISCC PLUS-certified sites supporting circular reinforcing carbon production across Asia, Europe and the Americas, along with two certified masterbatch and compounding sites in Europe.

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The Rathi Group has formalised a partnership with the Indian Tyre Technical Advisory Committee (ITTAC) through a Memorandum of Understanding aimed at advancing technical collaboration on recovered carbon black (rCB). The agreement focuses on the responsible integration of rCB into tyre manufacturing, with an emphasis on detailed evaluation and enhancement of its material properties. This initiative will be driven through structured engagement between industry and academia, supported by ITTAC’s technical expertise.

The collaboration is facilitated by the Automotive Tyre Manufacturers’ Association (ATMA) and ITTAC, which have brought together leading technical experts, tyre manufacturers and research institutions on a unified platform. Their coordinated efforts are fostering a science-based approach to accelerate the assessment and adoption of circular materials within the tyre sector. This partnership is seen as a significant step in strengthening industry–academia linkages to advance sustainable practices.

Through this alliance, the Rathi Group aims to contribute to the evolving landscape of tyre-to-tyre circularity. The joint initiative underscores a shared commitment to developing innovative solutions that support environmental responsibility while maintaining technical performance standards in tyre applications.

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