Global production of natural rubber declined slightly in the first half of this calendar year, said a report by the Association of Natural Rubber Producing Countries (ANRPC).
According to ANRPC's latest report, 'Natural Rubber Trends and Statistics', total production of natural rubber in member countries is estimated at 4.928 million tonnes for the period between January and June 2016, down 0.3% from the comparable period a year ago. While the production increased 1% in Thailand and 5.3% in Vietnam, it fell 0.3% in Indonesia, 12% in China, 3.8% in Malaysia and 3% in India.
ANRPC has attributed the decline in production to lower prices that farmers are experiencing across major producing countries. "A section of farmers abstains from harvesting trees due to unattractive net return. Mature rubber trees covering 130,000 ha in Malaysia and 145,000 ha in India are not being harvested. Besides, farmers by and large abstain from proper maintenance of holdings and reduce the frequency of harvesting at varying degrees across countries. These are reflected in average yield per tapped area," the report said.
ANRPC's report also stated that the eruption of economic and political disorder in European Union is a matter of concern for the natural rubber sector. "The EU-28 bloc currently accounts for 9.5% of the global demand for natural rubber. Among the 11-member countries, India, Malaysia and Sri Lanka have bigger export dependence on EU-28 nations as far as rubber and rubber products are concerned," the report said.
ANRPC has Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Philippines, Sri Lanka, Thailand and Vietnam as members. NewsletterA A
