Indian stock market tips|Natural Rubber imports may hit record high in FY19: ICRA
India's Natural Rubber imports are expected to reach the all-time high of 5.3-5.5 lakh tonnes in FY2019, credit rating agency ICRA said in a statement.
Imports have accounted for 40% of consumption in the last five years, and the same is expected to reach 50% during FY2019 with the shortfall envisaged in output, the agency said.
The expected decline in the Indian natural rubber output by 18 to 20% this fiscal year will adversely impact the tyre industry, ICRA said.
It has cited the flood in Kerala due to unusually high rainfall as the cause for the sharp fall in natural rubber which accounts for 35% of the overall input costs in the manufacture of tyres. This may result in pressure on operating margins of tyre manufacturers, ICRA said.
Natural Rubber accounts for over 20% of Kerala’s total area under cultivation and Kerala contributes to the largest share (84%) of output in the country. India is the second largest consumer (8% of global output) of NR, after China.
During FY2018, India produced 6.9 lakh tonnes of NR but consumed 11.1 tonnes, with the supply gap being fully met through imports from Indonesia, Thailand, Vietnam, etc.
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