Is Natural Rubber under mortal threat? Is there a possibility that factors like climate change, diseases etc. will bring the plantation industry to its knees?

It is a fact that the traditional rubber growing regions in almost all rubber producing countries in Asia are increasingly constrained by adverse effects of Climate Change. The yield from Hevea in traditional regions is impacted by extreme weather, recurrent cyclones, depression rains and flash floods. The last couple of years have seen interruption to tapping due to unforeseen rains and floods. Another major constraining factor is the recurrent outbreak of new diseases. For example, the outbreak of a new fungal leaf disease (Pestalotiopsis leaf fall disease) reported in Indonesia in 2018 has now spread into around 387,000 ha of mature rubber trees in the country. An estimated 141,000 ha in Thailand, 16,000 ha in Malaysia and 4,000 ha in Sri Lanka are reportedly affected by new fungal leaf diseases.

The low rubber prices that continued over several years resulted in poor maintenance of rubber holdings in almost all producing countries. As resource-starved farmers could not apply fertilizers or adopt proper crop protection measures over several years, rubber trees became weak and lost their resistance to diseases and extreme weather. It is striking to note that the root cause of the decline in yield is the unattractive prices and the resultant poor maintenance of holdings. A major trend reversal of prices can bring glaring positive changes in the natural rubber production sector. The potential national average yield (i.e., the annual production from a unit hectare of tapped trees) is 20 to 30% higher than what is realized now. For example, the average yield in India is currently 1,400 kg per hectare.  But a favorable price can increase the average yield to the range of 1,750-1,800 kg. The country had realized the average yield of 1,823 kg in 2012 when the prices ruled high.  Moreover, a large extent of mature trees which are currently left untapped in the country will come back to production once farmers find the prices attractive.  The country has around 200,000 hectares of mature trees which are left untapped.

More specifically, it is the uneconomic return from the venture that hinders the natural rubber production sector. There is no mortal threat to the supply base as far as prices stay remunerative and the net profit from the venture is attractive. No industry can sustain for a long if it is economically unviable and natural rubber is no exception.

Can a COVID19 like pandemic impact NR industry long term? Do plantations have an effective healthcare plan to ensure labourers’ health and safety?

NR sector globally has almost fully recovered from the impact of the Covide-19. This is particularly true with reference to the global production, consumption, trade, and prices of natural rubber. The prices in key physical markets had crossed over the pre-covid level even by October 2020 and firmed up further since February 2021. 

It is true that the production and processing sectors in Thailand and Malaysia are partly hindered as cross-border travel restrictions prevent migrant workers from neighboring countries to return to works. This issue, to a large extent, is resolved by making use of local workers by providing them necessary skills training. Coming to the downstream manufacturing sector, large number of debt-burden units in the MSME sector are reportedly struggling hard to bring their businesses back to normal.  On the other side, large-scale manufacturing units, particularly those in auto-tyre manufacturing, have made V-shaped recovery driven by the pent-up momentum generated on lifting of the lockdowns. For healthcare rubber products such as rubber gloves, the epidemic has been a major boon. Taking the global rubber industry as a whole, the industry has already come out from the impact of the pandemic.

Workers engaged in large plantations are provided with social security and healthcare facilities as per the regulatory provisions being followed by the governments in the respective countries.

What are the chances of NR getting totally replaced by alternative rubbers? Will this happen? If so, how soon?

NR getting totally replaced by any alternative material is an impossible event in any case. The relative share of NR in the total quantity of new rubber (i.e., natural rubber and synthetic rubber) globally consumed was less than 30% during early 1970s. From that low level, the relative share of NR has gone up to nearly 50% as of now (47.2% in 2020). Synthetic rubber and natural rubber are not competing each other because technical considerations limit the scope of substitution between the two.

Lack of sufficient economic benefits is considered to be a reason for planters looking for alternate crops that can bring faster financial returns. How real is this? How much of rubber plantations have been replaced by other crops?

A total extent of nearly 0.6 million hectares of rubber trees was estimated to have cut down during 2015-2020 period in Thailand, Viet Nam, China, Malaysia, and India for cultivation of other crops or for conversion of land for non-farm uses. The details are given below:

In the case of Thailand, farmers are offered attractive cash incentive (More than US$3500 per hectare) by the government for removing aged rubber trees and planting other crops. It means, the shift from rubber in Thailand is largely policy driven. The case of Thailand is an exception. Generally speaking, the crop shift from rubber over the past few years is caused by the unattractive net profit from the venture.

Is plantation industry too slow to modernise itself, technologically as well as in terms of attracting skilled labor?

It is a fact that technological progress is severely constrained in the smallholder-dominated rubber production sector. The unattractive prices that prevailed over the period since 2015 made the farmers deprived of resources. Although high-yielding clones are available, farmers are generally postponing the replating of aged low-yielding trees due to their inability to meet the huge replanting cost. Another factor that prevents smallholders from replanting is the uncertainty of the farmers over the long-term prospects of rubber cultivation. Unattractive prices have also discouraged farmers from adopting good agricultural practices. Poor return from the venture has compelled farmers to discontinue the application of fertilizers, pest and disease management measures, and proper maintenance of holdings. Larger section of farmers has discontinued the use of stimulants and rain-guarded tapping. However, technological progress continued in large plantations owned by corporates, enterprises, and the public sector.

NR supply has always been unstable due to various reasons. Is this prompting manufacturers to look for other options?

There is no serios supply constraint or supply uncertainty as of now except the seasonal shortage.  Moreover, all the producing countries have huge potential to increase their supply if the prices become attractive.  This point was elaborated earlier.

Is there a campaign being run by alternative rubber sector to put pressure on NR industry?

As stated earlier, NR does not face any threat from alternatives basically due to the reason that the only substitute for natural rubber is natural rubber. In the total global consumption of new rubber (i.e., natural rubber plus synthetic rubber), the relative share of NR is currently around 50% (47.2% in 2020) as against less than 30% in early 1970s. There is no reason to anticipate a fall in the relative share of NR in the next three decades at least.

Are environmental sustainability factors detrimental to NR cultivation?

Environmental considerations can only help NR to gain preference over synthetic rubber, polyurethane, and other materials in various applications because natural rubber is recognised as “an environment-friendly industrial raw material and renewable resource”. The following points establish such a view:

1. Rubber plantations purify atmosphere by absorbing CO₂ and releasing O₂. Based on scientific research undertaken by rubber research institutes in five countries, it is empirically proven that a hectare of rubber plantation annually sequesters as much as 30 tonnes of CO₂ from atmosphere which is near to that of the Amazonian base.
2. Rubber plantations are a good source of timber and bulk of this goes into furniture industry thereby protecting large extent of forests from being logged every year. Secondary branches of the rubber trees go into the fiber board industry and small twigs are used by the rural people as a source of firewood, both indirectly saving forests.
3. Rubber plantations contribute to sustainable soil productivity. Soil productivity has not deteriorated in any of the traditional rubber growing countries which have the history of growing rubber for more than 100 years and already completed 3-4 rubber plantation cycles. 
4. One of the key factors which had adversely affected food crops production in the last couple of years was climate change.  Rubber plantations offer solution to this as it helps balancing carbon level in atmosphere.  Rubber is no longer a mono crop.  Several food crops are grown along with rubber plants in all NR producing countries. The concept of raising rubber plantations as agro-forestry is being increasingly promoted across countries.  It is common among rubber farmers to maintain a portion of their land for other crops.  Moreover, rubber holdings provide sources of ancillary income through activities such as horticulture, fishery, honeybee, goat farming, etc. 
5. In all major natural rubber growing countries, rubber has been identified as a major tool of poverty alleviation and thus helping to achieve the Millennium Development Goals (MDGs).

Are there any concerted efforts being taken up by organisations like ANRPC, IRSG or governments that subsidise NR cultivation?

Developmental activities such as promotion of new-planting and replanting in each country are undertaken by the respective governments only. Among the member governments of ANRPC, Thailand, Malaysia, India, and Sri Lanka provide financial incentives to farmers to promote the cultivation of rubber. The governments usually mobilize the funds needed for the purpose from the same sector by levying a cess on the quantity of NR exported from the country or consumed within the country. The financial assistance cannot be termed as a ‘subsidy’ because the funds needed for the purposes are mobilized from the same sector.

Is it possible to have a globally uniform price structure for NR that can ensure interrupted supply?

In a market driven global economy, commodity prices are largely determined by the forces of supply and demand. This is particularly true in the case of NR which is a strategic industrial raw material coming from more than 10 million smallholder farmers world over. It is not practical to regulate NR prices globally as it is a real challenge to bring together all major producing countries and consuming countries for such a common agenda on terms acceptable to all. (TT)

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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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Birla Carbon, a leading global manufacturer and supplier of high-quality carbon materials, is joining forces with the Indian Carbon Society (ICS), the International Advanced Research Centre for Powder Metallurgy and New Materials (ARCI) and Birla Institute of Technology and Science (BITS) to host the Conference on Advanced Carbon Materials (CACM) 2026. Scheduled to take place from 18 to 20 February 2026 at the BITS Pilani, Hyderabad Campus, this event underscores Birla Carbon's deep expertise and ongoing dedication to progress in the carbon materials sector. The company’s commitment is evident through its evolving portfolio, which features industry-leading carbon black, carbon nanotubes and sustainable carbon innovations.

During the conference, Birla Carbon will showcase how its engineered carbon solutions are driving next-generation energy systems and advancing nanotube-enhanced materials. Presentations will highlight developments in customised carbon black architectures designed to improve durability and performance in tyres, rubber products and specialised applications. Additionally, the company will share progress on low-carbon materials derived from bio-based and circular feedstocks, contributing to a wider transition towards sustainable manufacturing practices.

CACM 2026 aims to unite leading scientists, technologists and industry professionals in the field of carbon science and engineering. The event seeks to encourage collaboration among academic, industrial and research sectors, highlight groundbreaking innovations and address key strategic and national priorities in the development of advanced carbon materials.

Dr Ann Schoeb, Chief R&D Officer and Energy Systems, Business Head, Birla Carbon, said, “Innovation in carbon materials is at the core of Birla Carbon’s DNA. Our commitment to advancing material science drives us to collaborate with leading academic and research institutions that share our vision for the future. Carbon materials will play an increasingly critical role in enabling high-performance and next-generation applications across industries. At the same time, they are instrumental in enhancing sustainability and circularity, supporting the transition towards a lower-carbon economy and improving quality of life globally.”

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Birla Carbon, a leading global manufacturer and supplier of high-quality carbon materials, is set to take part in PaintIndia 2026, scheduled from 19 to 21 February 2026 at the Bombay Exhibition Centre in Mumbai. The company will be located at Booth L3 in Hall 4. At the exhibition, Birla Carbon will highlight its dedication to innovation tailored to specific applications, alongside its strengths in localised production and dependable supply chains, all aimed at supporting the paints and coatings sector with an extensive lineup of advanced carbon-based products.

A key focus will be the Raven line of speciality carbon blacks, engineered to address the shifting needs of modern coatings and inks in terms of performance, appearance and manufacturing efficiency. Visitors will encounter a variety of Raven grades designed to deliver exceptional blackness, precise tonal qualities and consistent results across multiple formulation types. Among these are solutions optimised for waterborne, solvent-based and powder coatings, such as the Raven 5000 Ultra, Raven 5100 Ultra and Raven 3500, which are known for their deep blue shades and reliable colour output.

The company will also present specialised grades developed for powder coatings and inks, including the Raven 1035 Powder, Raven 1185 Ultra Powder and Raven 1255 Powder. These products are part of a globally recognised portfolio of treated blacks now manufactured in India, offering reduced delivery times and greater supply stability along with superior performance characteristics. In addition, Birla Carbon will feature its broader range of advanced materials, which includes Nanocyl carbon nanotubes like the NC7000, Aquacyl and Epocyl, prized for their high electrical conductivity in various coating applications.

Conductex carbon blacks, noted for their ease of dispersion and strong conductive properties, will be presented as ideal for flooring coatings and primers. The Continua SCM line, a sustainable carbonaceous material, will also be on display, distinguished by its uniform quality, lower carbon footprint and elevated purity that meets food-contact standards and other rigorous requirements. Overall, Birla Carbon’s presence at PaintIndia 2026 will underscore its ongoing commitment to developing high-performance materials and solutions shaped by customer needs.

John Davidson, Chief Sales, Marketing & Sustainability Officer, Birla Carbon, said, “PaintIndia 2026 provides an important platform to exchange ideas, showcase innovation and collaborate on the next phase of coatings development in India and globally. Birla Carbon formulations are being improved in multiple dimensions today. The focus is on helping formulators with new materials science solutions that deliver both performance and predictability, with higher purity levels suitable for food-contact compliance. We continue to advance responsible innovation through solutions such as Continua SCM, our sustainable carbonaceous material designed to support mitigated CO₂ emissions with consistent quality and supply security. And of course, we are delighted to offer a range of ‘Made in India’ high-performance grades fresh from our new facility in India.”

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