The total production of Natural Rubber (NR) during 2018-19 is provisionally estimated at 648000 tonnes.  The production of NR during April-May 2019 is provisionally estimated at 74000 tonnes. 

The Natural Rubber prices have been at relatively low levels during the past few years in domestic and international markets.  However, the rubber prices started increasing during the recent weeks and the average price for the RSS4 grade in June, 2019 was 150.29 per kg.  The Natural Rubber prices are determined by market forces and a range of factors which inter-alia include trends in economic growth in major consuming countries, oil/synthetic rubber prices, weather conditions and developments in future markets.

The domestic NR market generally follows the trend in world market with occasional divergences due to region specific and seasonal factors.  No quantitative restrictions can be imposed on the import of NR under WTO commitments.  The domestic NR price is sensitive to import of NR.  Therefore, to regulate the import of NR, the Government has increased the duty on import of dry rubber from “20% or Rs. 30 per kg whichever is lower” to “25% or Rs. 30 per kg whichever is lower” from 30.4.2015.

The Government has also reduced the period of utilization of imported dry rubber in January 2015 under advance licensing scheme from 18 months to 6 months. The Director General of Foreign Trade (DGFT) has imposed port restriction on the import of Natural Rubber by restricting the port of entry to Chennai and NhavaSheva (Jawaharlal Nehru Port) since 20^th January, 2016.

State-wise production of NR upto 2018-19 is given below:

Source:  Rubber Board

P: Provisional

This information was given by the Minister of Commerce and Industry, PiyushGoyal, in a written reply in the Lok Sabha today.

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MM