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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Natural Rubber (NR) plantations developed under Project INROAD (Indian Natural Rubber Operations for Assisted Development) have reached 179,376 hectares across north-east India after the completion of planting for the 2025-26 financial year, bringing the initiative close to its original target of 200,000 hectares.

Launched in the 2021-22 financial year, the project has established new NR plantations across 113 districts in the region over the past five years. According to the project partners, this represents the country's largest expansion of natural rubber plantations achieved within such a period.

Project INROAD is funded by tyre manufacturers Apollo Tyres, CEAT, JK Tyre and MRF, and is implemented by the Rubber Board of India. It is described as the first initiative of its kind in which the Indian tyre industry directly supports the development of rubber plantations.

"Despite several operational challenges including Covid-induced disruptions in the beginning, nearly 90% of the ambitious target of 2 lakh hectares of new plantation has been achieved under Project INROAD during the last five years. Beyond plantation expansion, the project has also made significant progress in strengthening local nurseries and building grower capacities — a testament to the collaborative efforts of the tyre industry and the Rubber Board," said Mohan Kurian, chairman of Project INROAD.

The project has distributed a record 83m quality planting materials during the five-year period. It has focused on supporting resource-constrained communities in the designated states, particularly small and marginal farmers, most of whom own less than one hectare of land. More than 200,000 beneficiaries have been supported through the initiative, with the project aiming to improve livelihoods and promote socio-economic development.

Project INROAD has also expanded nursery infrastructure across the region. More than 200 nurseries are supplying high-yielding planting materials to growers, while new and improved rubber clones suited to the north-east's agro-climatic conditions are being distributed through the programme.

"With plantations reaching a critical stage, the next component of the project — development of supporting infrastructure such as model smokehouses and dissemination of improved practices among rubber growers — is progressing well under the INROAD Skilling and Production Efficiency Enhancement Drive (iSPEED) initiative," Kurian added.

Under the iSPEED initiative, infrastructure development is intended to improve the quality of rubber produced by farmers through value addition at source. The programme also plans to roll out large-scale digital and in-person training for growers, supported by newly developed training materials that are ready for release.

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Epsilon Carbon, a leading global manufacturer of carbon black, speciality carbon and coal tar downstream products, has achieved a significant industry milestone by becoming the first carbon black manufacturer in India to secure certification from the Bureau of Indian Standards (BIS). This recognition, granted under the applicable Indian Standards, establishes a new benchmark for quality compliance within the domestic carbon black sector. The achievement distinguishes Epsilon Carbon as a pioneer in adhering to the nation's stringent regulatory framework for industrial materials.

The certification was awarded after an exhaustive evaluation of the company’s operational protocols, including its manufacturing workflows, quality management frameworks and product testing laboratories. This accomplishment is the culmination of prolonged and strategic investments aimed at refining process consistency, upgrading workforce expertise and standardising production methodologies. Consequently, the company is now exceptionally equipped to address the escalating requirements of tyre manufacturers, rubber product fabricators and various ancillary industries that demand rigorously vetted raw materials.

For Epsilon Carbon’s clientele, this official endorsement provides heightened confidence regarding product uniformity and regulatory adherence, a crucial factor as supply chains become increasingly scrutinised in both domestic and international markets. This development not only reinforces the company’s stature amid India’s transition towards a quality-centric industrial landscape but also advances its long-term vision of securing a global reputation as a premier supplier of high-performance carbon-based materials.

Gaurav Mathur, Chief Executive Officer, Epsilon Carbon, said, "This certification is an important milestone in our manufacturing journey. I congratulate our teams for the dedication that made this possible. It gives our customers greater confidence in our products, and it pushes us to keep raising the bar for what Indian manufacturing can deliver."

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Bekaert has entered into a strategic cooperation agreement with CITIC Special Steel, a prominent Chinese producer of specialised steel products. The partnership establishes a formal framework for technical collaboration aimed at addressing the viability of reintegrating steel reclaimed from scrap tyres into the production of new tyre reinforcement materials. The core objective is to determine whether end-of-life tyre steel can be effectively processed into wire rod suitable for manufacturing fresh reinforcement components.

The initiative merges CITIC Special Steel’s advanced capabilities in steelmaking and rod production with Bekaert’s specialised knowledge in tire reinforcement technologies. Together, the firms will conduct a technical assessment of material flows to gauge the feasibility of establishing more circular loops within the tyre manufacturing value chain. Their joint efforts will prioritise the examination of closed-loop steel usage on a significant scale.

This proof-of-concept endeavour is in its nascent stages and will concentrate on cooperative technical assessments, industrial-scale trials and exhaustive material analyses. The resulting data will clarify the technical, operational and financial consequences of integrating substantial proportions of circular steel. The programme seeks to ensure that any potential solutions adhere to the rigorous quality and performance benchmarks demanded by the sector while also mapping out future strategic directions.

The official signing ceremony occurred in Jiangyin, China, with delegations from both entities convening to deliberate on innovation and sustainability. As demand for eco-friendly alternatives intensifies across the automotive and materials sectors, this collaboration is designed to expand current knowledge and test technical limits. It represents a continuation of Bekaert’s wider sustainability agenda, which includes solutions like Dramix LoopTM, and reaffirms a mutual dedication to pioneering future industry standards through ecosystem-wide innovation.

Jim Dobson, SVP – Technology & Quality, Bekaert, said, "The transition towards more circular industries requires innovation and close collaboration throughout the value chain. Through this cooperation, we are bringing together complementary expertise to explore the technical feasibility of tyre-to-tyre circularity.”

Jiang Qiao, General Manager Sales Company, CITIC Special Steel, said, "We are pleased to deepen our relationship with Bekaert through this strategic cooperation. Together, we will explore how innovation in steelmaking and materials technology can help advance new approaches to circularity in tyre reinforcement applications."

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Zeon Corporation has been included in three major ESG investment indices, marking its debut selection for the FTSE4Good Index, the FTSE JPX Blossom Japan Index and the FTSE JPX Blossom Japan Sector Relative Index. These benchmarks are administered by FTSE Russell and serve as key performance measures for enterprises with robust environmental, social and governance practices.

The FTSE JPX Blossom Japan and its Sector Relative counterpart are specifically utilised as reference points for the Government Pension Investment Fund of Japan, while the FTSE4Good Series holds international recognition for tracking leading global firms. FTSE Russell’s evaluation framework examines a broad spectrum of criteria, spanning climate action, ecological footprint reduction, supply chain integrity, human rights, workplace safety, governance structures and anti-bribery protocols.

Operating under a founding principle dedicated to environmental preservation and human welfare, Zeon perceives this acknowledgment as validation of its ongoing sustainability efforts. The company remains steadfast in advancing social contributions through its commercial operations and intends to persistently strengthen its long-term enterprise value.

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