KERALA FLOODS: RUBBER PRODUCTION TO BE GRAVELY AFFECTED, SAYS ATMA

Date: Aug 26th  2018   Copy editor: Tyrefull

The Automotive Tyre Manufacturers Association (ATMA), the trade body of tyre producers in India, has stated that the recent floods in the rubber producing state of Kerala will gravely affect the Natural Rubber (NR) production in India. 

In the most devastating flood in a century happened in the coastal state of India had caused a damage of over Rs 200 billion and over 400 people lost their lives. The association is of the opinion that the NR production during July and August will be further affected due to Kerala floods.

“Tyre industry is deeply anguished at the natural calamity that has hit Kerala and stands with the Rubber growers in this hour of adversity. We expect NR production to be affected gravely due to incessant rains and floods. Kerala accounts for more than 85 percent of total domestic NR production. Already the gap between NR production and its demand is widening in the country. In the first quarter, more than 40 percent of the demand for NR had to be met from imports in view of the domestic deficit. Hopefully, the production will go up as flood situation improves as the peak NR production period begins in September. Over the years the uncertainties of weather surrounding NR production have become intense,” said Rajiv Budhraja, Director General ATMA.

He pointed out that adverse heat conditions have also been a contributory factor for drop-in NR productivity.

Jom Jacob, Senior Economist, Association of Natural Rubber Producing Countries (ANRPC), has said that the rubber supply during this year will be lower than what was anticipated earlier due to Kerala floods.

“It may need at least a week to estimate the output loss. The Rubber Board has to wait to get reports from its village-level offices,” he said.

Natural rubber production hit a six-year low of 1.26 lakh tonnes in the first quarter of FY 2018-19 while consumption stood at the highest level at 3.02 lakh tones.

AD: You can get  better price from us for Doublestar tire. Doublestar brand tire is the TOP 10 Chinese brand tires since 2004. Give us a call and  you would enjoy a quality tyre and service from us.