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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Zeon Corporation has deepened its commitment to digital chemistry through a strategic investment and partnership with Chemify Limited, secured via its corporate venture arm Zeon Ventures Inc. Chemify, a growth-stage UK enterprise, is reshaping molecular research by integrating digital tools with automated laboratory systems. Its proprietary Chemputation technology translates molecular targets into executable chemical code, which operates directly on robotic platforms to complete integrated Design–Make–Test–Analyze cycles without manual intervention. This closed-loop automation allows Chemify to explore previously inaccessible areas of chemical space while reducing the timeline from concept to synthesized compound by up to tenfold.

A cornerstone of Chemify’s capability is its recently inaugurated Chemifarm in Glasgow – one of the most sophisticated automated facilities in the world for molecular design and construction. The facility enables accelerated iteration and autonomous synthesis of novel small molecules, converting chemical code into tangible compounds with unprecedented efficiency. These advances are critical for developing functional, synthesisable molecules that can contribute solutions to urgent global issues spanning public health, energy efficiency and environmental protection.

Zeon has been at the forefront of adopting digital methodologies in chemical R&D, recognising their transformative potential from an early stage. This investment is positioned to strengthen Zeon’s internal digital chemistry efforts and catalyse the invention of novel materials capable of addressing complex societal needs. The move aligns with Zeon’s STAGE30 corporate strategy, which targets a rise in revenue contribution from four key growth sectors – Mobility, Healthcare and Life Sciences, Telecommunications and Green Transformation – to 48 percent by fiscal 2028. By backing pioneering enterprises and cultivating advanced materials, Zeon continues to advance its dual vision of a sustainable planet and a secure, progressive society.

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The Rubber Board of India has announced the opening of an application window for financial aid for sulphur dusting to combat powdery mildew disease in rubber plantations for the year 2026. The scheme is open to all Rubber Producers’ Societies (RPS) operating in both traditional and non-traditional growing regions.

From 10 to 20 February 2026, eligible societies must submit their applications online through the 'ServicePlus' portal on the official Rubber Board website. Societies requiring help with the submission process are advised to contact their nearest Rubber Board regional office or field station, or to consult the board's website for further guidance.

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Pyrum Innovations AG has welcomed the official recognition by French authorities on 17 January 2026, which classifies tyre pyrolysis oil (TPO) as a legitimate raw material for the chemical sector. This pivotal regulatory milestone for pyrolysis oil derived from end-of-life tyres substantially enhances the product’s integration into established chemical value chains. It also provides greater predictability for future purchase and partnership frameworks, thereby accelerating the development of industrial material cycles.

For Pyrum, which processes scrap tyres through pyrolysis to recover pyrolysis oil, industrial carbon black and steel, this decision underscores the critical need for standardised and reliable regulatory conditions. Such clarity is fundamental for scaling investments, production volumes and supply chains, particularly as the chemical industry and circular economy converge. The establishment of clear product categories is essential to ramp up the market for high-quality recycled raw materials.

The company remains committed to tracking further developments in France and the wider European dialogue regarding the classification and application of recycled feedstocks. Pyrum’s overarching objective is to expand industrial-scale recycling solutions for scrap tyres. This regulatory progress directly supports the company’s mission to secure long-term, quality-assured supply agreements with partners across the chemical industry, thereby advancing a more sustainable and circular economic model.

Pascal Klein, CEO, Pyrum Innovations AG, said, “The decision in France is an important step for the industrial use of pyrolysis oil from waste tyres. It supports a trend that we are seeing in many markets, where the chemical industry is seeking reliable, technologically robust and clearly classified alternative raw materials.”

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In pursuit of its strategic vision, ‘Michelin in Motion 2030’, Michelin is expanding into high-value adjacent markets, including the development of its Polymer Composite Solutions. A key step in this growth is the acquisition of Flexitallic, a global leader in sealing solutions based in Houston, Texas. This move is set to substantially enhance Michelin’s sealing portfolio and extend its market access, particularly within the aftermarket sector.

Flexitallic serves critical industries such as energy and chemicals, providing high-performance gaskets, sheet products and specialty filler materials known for exceptional reliability and resistance in extreme, safety-critical environments. The company, which operates 17 facilities worldwide and employs about 1,200 people, reported sales of approximately USD 220 million in 2025.

The acquisition is a strong strategic fit, uniting two global organisations with a shared commitment to innovation and quality, thereby creating significant synergies for future growth. The transaction, for an undisclosed amount, will be fully financed from Michelin’s available cash. Subject to standard regulatory approvals and closing adjustments, it is anticipated to be finalised in the first half of 2026.

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