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According to data released by the Indian Rubber Association, the downward trend in prices over the past few years has led to India's natural rubber production in 2015-16 falling to the lowest level in nearly two years, at 563,000 tons, down 13%
from 645,000 tons in the previous year.
The last time production was below that level was in 1996-97, when production was 549,425 tonnes
.
However, compared to FY2014-15, the decline in production was relatively small, with production falling by 17%
in the current year.
India's production reached a record high of 913,700 tonnes in 2012-13, after India's natural rubber production had been growing
steadily except in 2009-10.
India's consumption of natural rubber also declined in 2015-16 to 987,540 tonnes, down 3%
from 1,020,910 tonnes in the previous year.
Consumption increased in 2014-15, despite a decline
in production.
Production fell sharply, while consumption fell by only 3 per cent, leading to an increase
in imports.
India's natural rubber imports in 2015/16 reached a record high of 454,303 tonnes
.
In fiscal 2016, rubber prices fell 27 percent from the start of the year before recovering
.
Prices fell to a nine-year low of Rs 91 per kilogram in February before recovering
.
By the end of March 2016, the price had risen to Rs 115 per kg
.
