Tuesday, 02 January 2024 12:17 GMT

Kerala Has Vast Untapped Rubber Reserves Amid Growing Demand: ATMA


(MENAFN- KNN India) Kerala, Jul 3 (KNN) Kerala still has around 100,000 hectares of untapped rubber plantations-nationally, over 200,000 hectares lie unused-mainly due to aging trees, migration of owners abroad, and acute labour shortages, per the Automotive Tyre Manufacturers' Association (ATMA).

India's annual natural rubber demand stands at approximately 1.4 million tonnes, yet 40–45 % of this is imported, since about 40 % of domestic tyres rely on imported rubber.

Kerala, a major rubber producer, meets most of its internal requirements locally, but the shortfall prevents any significant exports.

To address this, ATMA has partnered with the Ministry of Commerce & Industry and the Rubber Board of India to launch Project INROAD, a Rs 1,100 crore initiative funded by four leading tyre firms, reported TNIE.

It aims to bring 200,000 hectares of land under renewed rubber cultivation, while also improving infrastructure and training in key growing regions.

Arun Mammen, ATMA's chairman, warned that India's rubber demand could reach 2 million tonnes by 2030, necessitating urgent action to boost domestic supply.

He emphasised that while synthetic rubber leads globally, India still champions natural rubber-about 60 % of rubber used in Indian tyres is natural, compared to 40 % worldwide .

Despite headwinds such as trade uncertainties and global supply disruptions, the Indian tyre industry showed resilience, with tyre exports rising 9 % in FY 2024–25 (to Rs 25,051 crore) and capital investments of around Rs 27,000 crore in recent years.

According to PwC, the sector is projected to grow at an 11–12 % CAGR through 2047.

(KNN Bureau)

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