Navigating the Future of Rubber Production in India: Sustainability and Export Growth

One of the main drivers of the global rubber market is the Indian rubber industry. India is the fifth-largest user of all types of rubber, including synthetic rubber, and the second-largest consumer of natural rubber. Kerala saw the start of the industry in 1895, and commercial cultivation followed in 1902. Kerala continues to be the state that produces the most natural rubber, accounting for 78% of the total. It supports important businesses including manufacturing, footwear, and automobiles. It is making an effort to increase exports and meet the growing global demand. In line with worldwide sustainability trends, the industry is going green by using a number of eco-friendly procedures.

Types of rubbers

The rubber industry in India is classified into two main types:

• Natural rubber is obtained from the latex of rubber trees, mainly from ‘Hevea Brasiliensis’. It is widely used in industries requiring strong elasticity and wear resistance. Its high resilience, durable, and flexible features helps it become an important manufacturing element for tyres, industrial goods, and medical products. The biodegradable quality of natural rubber makes it eco-friendly. Rubber Smoked Sheet (RSS), latex concentrate, solid block rubber are main of the types of rubber produced & utilized in India.
• Synthetic rubber is an artificial elastomer made from petroleum-based chemicals through polymerisation. It has similar properties of natural rubber but offers enhanced resistance to heat, oil, chemicals, and wear. It is comparatively cheaper than natural rubber. Styrene Butadiene (SBR) and Poly Butadiene (BR) are two main type of synthetic rubbers used and produced in India.

Overview of rubber industry in India

Natural Rubber production in the country during FY24 recorded a positive growth of 2.1% YoY. The growth in production is attributed to several factors such as measures taken by the Rubber Board to increase tapped area, supply of rain guarding materials, continuation of Rubber Production Incentive Scheme (RPIS) scheme, encouraging self-tapping, and other essential agronomic practices to prevent leaf diseases, etc.

Synthetic Rubber production increased 16.9% YoY in FY24. The domestic synthetic rubber production in FY25 (April to October 2024) was at 333,436 tonnes, increasing by 4.8% from 318,053 tonnes produced during the same period last year.

Source: Rubber Board, * - Until October 2024

The total rubber area under rubber plantation in the country is estimated to have expanded to 889,000 Hectares (HA) during FY24 from 850,000 HA during FY23. The tappable area under rubber was 753,885 HA during FY24, of which only 577,300 ha (76.6%) has contributed to the natural rubber production during the year, leaving more room for further expansion and growth in production.

Key states driving rubber production in India

Indian rubber cultivation is mostly found in the southern and north-eastern parts of the country, as it has most suitable climatic conditions. The north-eastern region is benefitted with heavy rainfall and humidity, whereas the southern part of India is gifted with widespread coastal area. This climatic combination is very good for the cultivation of rubber trees.

Source: Ministry of Commerce & Industry

Kerala, Tripura, Karnataka, Assam, Tamil Nadu, Meghalaya, Nagaland, Manipur, Goa, and Andaman & Nicobar Islands are India's greatest production states. The rubber industry plays a vital role in providing employment opportunities for many farmers ultimately developing rural economy, and supporting various other industries like automobile, healthcare etc.

Rubber export from India

Source: Rubber Board, * - Until October 2024

The volume of rubber exported from the country has increased to 4,199 tonnes in FY24 from 3,700 tonnes in FY23. Export of rubber during the year FY24 is valued at Rs. 55.1 crore (US$ 6.34 million). Of the total rubber exported in FY24 from India, 9.3% was Ribbed Smoked Sheet (RSS), 19.2% latex concentrates and 70.0% Technically Specified Rubber (TSR) in FY24, with Sri Lanka being the biggest importer.

Key trends in the rubber industry

Government initiatives

pThe Government of India has taken various initiatives to promote and develop the rubber industry. Research and development, technology advancement, farmers’ welfare are some of the key focus areas. These initiatives are designed with an aim to increase the amount and quality of rubber to the advantage of rubber farmers, manufacturers, and workers in the industry. Following are some initiative which will help to achieve significant development in rubber industry