INDIA is facing a critical shortage of natural rubber ( NR ), with domestic production falling short by approximately 5.5 lakh ( 550,000 ) tonnes , according to Times of India . Despite a slight increase in NR production from 8.39 lakh ( 839,000 ) tonnes in 2022-23 to 8.57 lakh ( 857,000 ) tonnes in 2023-24 , demand has outpaced this growth , rising from 13.5 lakh ( 1,350,000 ) tonnes to 14.16 lakh ( 1,416,000 ) tonnes . This gap has led to significant challenges , including high customs duties and limited availability of imports , causing a sharp rise in prices and threatening industries dependent on NR .
Shashi Singh , president of the All-India Rubber Industries Association ( AIRIA ), emphasised that while production has increased , it
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has not kept pace with consumption , leaving the deficit unchanged .
He also pointed out the difficulties with imports , stating : “ NR imports face a 25 per cent customs duty or Rs30 ( RM1.55 ) per kg , whichever is higher , but that ’ s just one part of the issue . The other is the availability of NR .”
The global market is further complicating the situation , with China stockpiling NR and Bangladesh , a recent supplier , facing turmoil .
The shortage has caused NR prices to soar , reaching Rs247 ( RM12.75 ) per kg , the highest in 15 years , compared to Rs182 ( RM9.40 ) per kg in April 2024 . This price hike is particularly concerning for the tyre industry , which consumes about 70 per cent of NR , and smaller industries that are also heavily impacted .
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Singh highlighted a specific challenge for these smaller sectors : “ Take latex rubber used for making gloves and balloons , which has a total 75 per cent duty . There is a shortage of this raw material , but imported mattresses , balloons , or surgical gloves attract a much lower duty of just 10 per cent .”
In response to these challenges , AIRIA and the Automotive Tyre Manufacturers Association ( ATMA ) have approached the government to address the input crisis .
There are efforts to increase domestic NR production , with expansions into States like Tripura , which is now the secondlargest producer after Kerala . Singh stressed the importance of broadening production strategies , suggesting : “ We can search for more options to broad-base production .”
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This situation underscores the need for a balanced approach to boost domestic NR production while addressing import challenges to support industries reliant on this crucial resource . |
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EXTREME heat waves are severely impacting corn crops in key global markets , offering a potential advantage to US exporters who are dealing with a record surplus .
According to the US Department of Agriculture ( USDA ), excessive heat and dry conditions are expected to reduce corn production in regions such as Ukraine and the European Union , where crop stress is mounting .
Ukraine , a significant corn producer , is forecasted to see a 14 per cent drop in output compared to last year due to persistent dry weather .
The challenging conditions abroad have made US corn more competitive on the international market , providing a glimmer of hope for US farmers struggling to
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sell off a large surplus .
Despite a forecasted one per cent drop in US corn production from last year ’ s bumper crop , yields are expected to reach a record 183.1 bushels per acre , with many Midwest states anticipating solid harvests .
Brad Rippey , a USDA meteorologist , noted that most of the crop issues are outside the Midwest , particularly in the Southeast , where early heat and drought have negatively impacted yields .
While global corn prices are rising due to the reduced supply , US corn remains the most price-competitive . However , the season-average farm price has dropped to USD $ 4.20 per bushel , reflecting the challenges faced by American growers .
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INDONESIA is preparing to raise its palm oil-based biodiesel blending mandate from the current 35 per cent to 50 per cent , as planned by the incoming government . Presently , Indonesia ’ s ‘ B35 ’ program is among the highest biofuel blend mandates in the world .
While the outgoing administration of President Joko Widodo had intended to increase the mandate to B40 next year , President-elect Prabowo Subianto , set to take office in October , has pledged to boost the mandate to B50 further . However , a specific timeline has yet to be given .
Eniya Listiani Dewi , Director General of Renewable Energy at the energy ministry , mentioned
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that a static test for the B50 blend is currently being conducted involving the energy ministry and various stakeholders . This will be followed by vehicle road tests , typically taking about a year .
Meanwhile , the agriculture ministry is assessing palm oil supply levels .
The shift from B35 to B50 would require around 18 million tonnes of crude palm oil ( CPO ), a significant increase from the 11 million tonnes used under the B35 mandate and the 14 million tonnes projected for B40 . This increase could have implications for domestic cooking oil prices , exports , and government revenue from palm oil exports .
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