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)

Comments (0)

ADD COMMENT

Link Copied!

The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for January 2026, providing an overview of key developments in the global natural rubber sector.

As per the report, a notable price rise was observed this month, driven by a combination of surging crude oil prices and heightened demand from tyre manufacturers, especially in China.

Below is a summary of the latest trends and data points defining the NR sector:

Global NR production is expected to rise by 2.2 percent in 2026 to an estimated 15.324 million tonnes, according to recent statistics from ANRPC member countries. Global demand for consumption is expected to increase by 1.4 percent to around 15.602 million tonnes annually.

The tyre industry's recovery indications reinforce the market's resilience in the face of several global economic headwinds. The current state of the market indicates a time of consolidation. This comes after recent price increases and before the cyclical wintering season, which runs from February to May and is traditionally characterised by a more constrained worldwide supply.

Comments (0)

ADD COMMENT

Link Copied!

Bekaert has achieved a significant sustainability milestone by securing ISCC PLUS certification for its steel tyre reinforcement products. This accomplishment highlights the company's dedication to driving innovation and working closely with tyre manufacturers to promote the widespread use of materials with high recycled content.

Historically, steel used for tyre reinforcement was not covered by ISCC PLUS. However, a partnership between Bekaert, ISCC and the certification body TÜV NORD successfully developed a structured certification path for tyre cord and bead wire with high recycled content. TÜV NORD played a key role by auditing Bekaert’s Burgos facility during a pilot phase, technically validating that the ISCC PLUS framework could be effectively applied to steel-based products. This validation paves the way for its wider acceptance in the tyre sector.

This certification builds upon the foundation laid by Bekaert’s own Recycled Content Standard, which previously set an industry benchmark for traceability and sustainable practices. The earlier standard's success was instrumental in encouraging ISCC to broaden its certification framework to encompass steel products. Although the Bekaert standard will remain valid during the transition, ISCC PLUS now offers a globally acknowledged system that guarantees uniformity and clear traceability throughout the entire supply chain.

This certification positions Bekaert as a leader in advancing certified tyre reinforcement, fostering industry-wide acceptance and generating shared benefits with tyre makers. For manufacturers, utilising ISCC PLUS-certified materials lends credibility to their sustainability assertions, simplifies the certification landscape and aids in meeting regulatory and market demands. Furthermore, their customers continue to gain from Bekaert’s dependable supply chain, which is now enhanced by verified sustainable sourcing.

Annie Xu, President – Rubber Reinforcement, Bekaert, said, "Achieving ISCC PLUS certification demonstrates our leadership in certified steel with high recycled content for tyre reinforcement. We are proud to have worked closely with ISCC and TÜV NORD to shape this framework, which will help our customers stay ahead of sustainability and regulatory expectations."

An ISCC representative said, "We welcome the successful completion of the certification process for steel tyre reinforcement under ISCC PLUS. This demonstrates that the ISCC framework can be applied to additional material categories while maintaining our established requirements for traceability and verification."

Samir Beqqal, Head of Carbon Traceability Business Entity Sustainability, TÜV NORD CERT, said, "Working with Bekaert and ISCC on this pilot certification was an important step towards applying ISCC PLUS principles to new material categories like steel. We are delighted that we were able to contribute our expertise to this process and help ensure that certified traceability and sustainability assurance can also be effectively extended to industrial materials now.”

Comments (0)

ADD COMMENT

Link Copied!

Birla Carbon is set to participate in the upcoming Tire Technology Expo 2026, scheduled to take place in Hannover, Germany, from 3 to 5 March 2026. Attendees can find the company at Stand C 224, where it will present its latest innovations in carbon black and sustainable materials. The focus will be on solutions specifically designed to meet the evolving demands of the tyre industry, particularly in enhancing performance while aligning with broader environmental objectives.

The exhibition will serve as a platform to demonstrate how Birla Carbon’s advanced materials contribute to greater tyre durability and fuel efficiency. These developments are especially pertinent for next-generation mobility, including the specific requirements of electric vehicles. The company aims to show tire manufacturers how performance enhancements can be achieved without sacrificing sustainability commitments.

A key theme of their presence will be the strength and agility of their supply network across the EMEA region. By emphasising its robust local manufacturing and distribution framework, Birla Carbon intends to highlight its role as a dependable innovation partner. This infrastructure is built to ensure consistent quality and supply chain resilience, allowing for effective collaboration even in fluctuating market conditions.

Sustainability will be woven throughout the company’s engagement at the expo. Birla Carbon plans to detail its journey towards achieving net zero carbon emissions, spotlighting advancements like its Continua Sustainable Carbonaceous Material (SCM). The widespread ISCC Plus certification across its global manufacturing sites will also be featured, underscoring its commitment to traceable and responsible sourcing practices throughout the value chain.

John Davidson, Chief Sales, Marketing & Sustainability Officer, Birla Carbon, said, “Birla Carbon brings a range of innovative carbon black solutions, backed by its decades of manufacturing leadership, at a time when the industry is focused on maximising tyre performance across diverse mobility requirements. As mobility evolves towards electric and more energy-efficient platforms, carbon black is increasingly becoming a key performance enabler, directly influencing durability, rolling resistance and lifecycle emissions. Tire Technology Expo provides an impactful global platform to demonstrate how our advanced carbon material solutions are engineered for modern mobility and sustainability.”

Comments (0)

ADD COMMENT

Link Copied!

Sri Trang Agro-Industry Public Company Limited (STA) is advancing Thailand’s agricultural digital transformation through its homegrown platform, the Sri Trang Friends application. Launched in 2019 with the vision of providing a comprehensive digital tool for rubber farmers, the platform has since evolved to serve a broader agricultural community, including palm growers. It is designed to streamline access to information, services and various support mechanisms, creating a direct link between the company, farmers and supply chain participants.

A key recent development is the introduction of the Friends Shop feature and the Friends Point rewards system. This enhancement integrates local merchants from communities nationwide into the application, allowing farmers to conduct convenient transactions while helping to lower their daily expenses. The points accumulated can be used as cash equivalents or exchanged for a wide range of benefits, including essential goods and services, thereby stimulating local economic activity. The platform’s utility has also been extended to Sri Trang Group employees and the general public, who can now earn and redeem points for discounts or payments at participating outlets such as supermarkets, fuel stations and coffee shops. This expansion ensures the app delivers practical, lifestyle-oriented advantages to a wider user base.

According to Executive Director Vitchaphol Sincharoenkul, the application was originally conceived under the concept of ‘One App, Complete Services for Rubber Farmers’ to strengthen farmer engagement, improve coordination efficiency and ensure fully traceable and transparent produce trading. Beyond these operational goals, it also opens new marketing channels for local communities and fosters deeper collaboration across the agricultural value chain. The company is actively broadening its network of partners to diversify the benefits and merchant options available to users.

Currently, the Sri Trang Friends platform has attracted over 150,000 registered users, with more than 40 community merchants across various regions either already onboard or preparing to join. This growth underscores the company’s commitment to leveraging a Thai-developed digital solution to empower modern farmers, reinforce local economies and drive sustainable long-term progress within the nation’s agricultural sector.

Comments (0)

ADD COMMENT

Link Copied!