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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Birla Carbon, a leading global manufacturer and supplier of high-quality carbon materials, has been awarded the prestigious Platinum sustainability rating by EcoVadis, ranking it within the top one percent of all assessed companies globally. This honour recognises the firm’s enterprise-wide leadership in integrating sustainability across its operations, innovation and value chain.

The evaluation specifically commended its strong performance across four key areas: Environment, Labor & Human Rights, Ethics and Sustainable Procurement. This achievement is further validated by extensive third-party certifications, with over 75 percent of operations certified to international standards including ISO 14001, ISO 50001, ISO 45001, SA8000 and ISO 27001, underscoring the consistency and strength of its sustainability management systems.

John Loudermilk, President and CEO, Birla Carbon, said, “This Platinum rating reflects the steady progress we are making in embedding sustainability at the core of our business. Our growth strategy is geared towards delivering sustainability through innovation, operational excellence and responsible practices across our global footprint. We continually invest in sustainability and circularity-driven processes, keeping our operations sustainably efficient while creating long-term value for our customers, partners, communities and employees. Our sustainability strategy, Share the Future, serves as a roadmap to a sustainable future and guides our actions towards our aspiration of reaching net zero carbon emissions over the next 25 years. Being recognised among the top one percent of companies globally is a testament to the commitment of our teams worldwide.”

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The Yokohama Rubber Co., Ltd. recently conducted an educational seminar for local natural rubber farmers in partnership with the Surat Thani branch of the Rubber Authority of Thailand (RAOT). This marked the 10th such event since the programme's inception in 2020, involving 50 local farm households. Attendees received complimentary fertiliser, developed with RAOT's expertise, as part of the ongoing support.

The seminar curriculum covered essential agricultural topics, including soil and plant nutrition, correct fertiliser application and methods to prevent contamination in natural rubber. To commemorate the 10th seminar, the programme was expanded to include guest speakers from local government, police and healthcare. These guests addressed broader community and safety issues, such as human rights for foreign and minority workers, road safety and occupational health. A particular focus was placed on practical well-being, with the local hospital director offering guidance on preventing injuries during tree tapping and managing encounters with poisonous insects.

Post-event feedback from participants was overwhelmingly positive. Many expressed that they gained new, systematic knowledge about cultivation practices, despite years of experience. Several noted that hearing directly from a rubber manufacturer reinforced the critical importance of purity in their product. Others found the health and safety advice immediately useful. The engaging delivery of the seminar was also highlighted, with one farmer mentioning a desire to recommend the valuable and enjoyable experience to peers.

This initiative is a direct implementation of a memorandum of understanding (MoU) signed between Yokohama Rubber and RAOT in January 2020. The MoU focuses on economic support for farmers and improving supply chain traceability, aligning with the company's Procurement Policy for Sustainable Natural Rubber. Hosted in the region where Yokohama’s Thai natural rubber processing subsidiary, Y.T. Rubber Co., Ltd. (YTRC), operates, the seminar exemplifies the policy's guideline to support small-scale farmers within the supply chain.

As a founding member of the Global Platform for Sustainable Natural Rubber (GPSNR), Yokohama Rubber is committed to advancing these principles. The company views such efforts as integral to creating shared value under its sustainability slogan, ‘Caring for the Future’, and contributes to broader United Nations Sustainable Development Goals through the promotion of sustainable raw material procurement.

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In a significant event for India’s rubber sector, Minister for Ports, Co-operation & Devaswoms V N Vasavan inaugurated a ceremony for the transfer of innovative latex-based paint technology. This eco-friendly paint, a product derived from natural rubber, was developed by the Rubber Products Incubation Centre of the Rubber Research Institute of India. The technology was formally handed over to Kerala Paints Industries Private Ltd., with the Minister highlighting the event's historic nature for launching a sustainable product and stressing the importance of increasing domestic natural rubber consumption to improve grower returns.

Rubber Board Executive Director M Vasanthagesan outlined the centre's role in converting research into market-ready goods, reaffirming the Board's dedication to creating innovative, value-added rubber products. The gathering also heard remarks from several key figures, including Mahatma Gandhi University's K V Dayal, RRII Director Dr Debabrata Ray, RRII Senior Scientist Dr Shera Mathew and Kerala Paints' Managing Director Midhun P Pullumettel.

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The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for November 2025, providing an overview of key developments in the global natural rubber sector.

While a modest rise in global production of 1.3 percent is anticipated for the year, this follows a revised, lower output forecast for Indonesia. Concurrently, worldwide demand is projected to grow by a more subdued 0.8 percent, bolstered by an upward adjustment in Indonesia's own consumption figures.

Recent price pressures have emerged due to this combination of uncertain supply, influenced by unpredictable weather patterns and generally muted demand. However, there are sporadic positive indicators, including noticeable recoveries within the tyre sector across some regional markets.

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