IAS Gyan

Daily News Analysis


19th September, 2023 Economy

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Picture Courtesy: www.moneycontrol.com

Context: The Rubber Board, in collaboration with the Central government and the Automotive Tyre Manufacturers’ Association, is undertaking a project to increase the cultivation of natural rubber in the Northeastern States of India.

Key Highlights

  • Currently, there are approximately 8.5 lakh hectares of land dedicated to rubber cultivation in India. Out of this, Kerala and the Kanyakumari district of Tamil Nadu account for almost 5 lakh hectares, while Tripura has 1 lakh hectares under rubber cultivation.
  • The Rubber Board aims to expand rubber cultivation in states that are not traditionally associated with rubber production. This includes the Northeastern States of India, excluding Sikkim, but including West Bengal.
  • The potential for rubber cultivation in these Northeastern States is estimated to be around 4 lakh hectares. The project acknowledges challenges like landslides in these hilly regions. Therefore, it has been decided to plant rubber on 2 lakh hectares to mitigate such challenges.
  • In the previous financial year, approximately 27,000 hectares were brought under rubber cultivation. The plan is to cover about 40,000 hectares in the current year. The remaining areas are expected to be converted for rubber cultivation within the next two years.
  • The expansion of rubber cultivation is expected to bring about socio-economic benefits to these states. For example, states like Chattisgarh have expressed interest in adopting rubber cultivation.

Rubber Production in India


  • India has a tropical climate, which is suitable for rubber production. Rubber plants require a warm and humid climate with adequate rainfall throughout the year. The average temperature range of 20-35°C and an annual rainfall of 1500-3000 mm are ideal conditions for rubber cultivation.
  • Rubber plants thrive in well-drained, loamy soils that are rich in organic matter. The soil should have good moisture retention capacity while allowing proper drainage. Acidic soils with a pH range of 4.5 to 6.5 are most suitable for rubber cultivation.
  • Rubber cultivation in India is primarily concentrated in the following states:
    • Kerala is the leading rubber-producing state in India, with the largest area under rubber cultivation.
    • The Kanyakumari district in Tamil Nadu also contributes significantly to rubber production.
    • Karnataka has a growing rubber industry, particularly in the Malnad region.
    • In the Northeastern region, Tripura is a major rubber-producing state.

Significance of Rubber Production

Economic Contribution

  • Rubber cultivation and the rubber industry play a pivotal role in the Indian economy by providing employment opportunities to a substantial workforce, particularly in rural areas.
  • The rubber sector generates jobs across various stages, from planting and harvesting rubber trees to processing and manufacturing rubber products. This employment not only sustains livelihoods but also contributes to poverty reduction and the overall economic development of rural communities.

Foreign Exchange Earnings

  • India's rubber exports make a substantial contribution to the country's foreign exchange earnings.
  • Rubber and rubber products are in demand worldwide, and India's position as a major rubber exporter allows it to earn valuable foreign currency. This foreign exchange income helps stabilize the balance of payments and strengthens India's position in international trade.

Industrial Use

  • Rubber is an indispensable raw material for a wide range of industries in India, including the automotive and manufacturing sectors.
  • In the automotive industry, rubber is used for manufacturing tires, hoses, gaskets, and various components. In manufacturing, rubber is used in the production of belts, seals, and a multitude of other products. The availability of high-quality rubber locally is essential for these industries to thrive. Therefore, the rubber sector is not only essential for the industrial growth of the country but also plays a vital role in supporting other sectors of the economy.

Challenges in Rubber Production

Pests and Diseases

  • Rubber plants are vulnerable to a range of pests and diseases, including leaf diseases, fungi, and insect infestations. These pests and diseases can cause significant damage to rubber trees and reduce rubber yields.
  • Effective management and control measures, such as the use of pesticides and disease-resistant varieties, are necessary to mitigate these risks and maintain healthy rubber plantations.

Price Volatility

  • Rubber prices are subject to considerable fluctuations in the global market. Factors such as changes in demand, supply disruptions, and fluctuations in crude oil prices (since rubber is a petrochemical-based product) can lead to rapid price swings. This price volatility can pose challenges for rubber farmers, as it can affect their income and profitability.
  • Farmers may face difficulties in predicting and planning for their earnings, making financial stability a concern.

Environmental Concerns

  • Rubber cultivation, especially when not managed sustainably, can have adverse environmental impacts.
  • Deforestation: To create rubber plantations, natural forests are often cleared, leading to deforestation and habitat loss. This can have negative consequences for biodiversity and local ecosystems.
  • Soil Degradation: Intensive rubber cultivation practices, such as monoculture farming and excessive use of agrochemicals, can lead to soil degradation. This includes soil erosion, loss of soil fertility, and increased susceptibility to landslides.
  • Chemical Runoff: The use of pesticides and fertilizers in rubber farming can result in chemical runoff into nearby water bodies, potentially polluting them and harming aquatic life.

Way forward to promote sustainable growth in rubber production

  • Research and Development: Investing in research and development is crucial for the rubber industry's future. This includes developing disease-resistant rubber varieties and sustainable cultivation practices. Research can also focus on improving yield and quality, reducing production costs, and enhancing the overall efficiency of rubber farming.
  • Market Diversification: To reduce dependence on price fluctuations in the global rubber market, India should explore new markets and product avenues for rubber exports. This can include the development of value-added rubber products and finding niche markets where Indian rubber can gain a competitive advantage.
  • Sustainable Practices: Promoting sustainable rubber farming practices is essential to address environmental concerns. This involves implementing practices like agroforestry, which integrates rubber cultivation with other tree species to reduce deforestation and soil degradation. Additionally, adopting organic farming methods and responsible pesticide use can minimize the environmental impact of rubber production.
  • Farmer Training: Providing training and support to rubber farmers is crucial for enhancing their productivity and income. This can include educating farmers on modern farming techniques, efficient resource management, and pest/disease management. Training programs can also emphasize the importance of sustainable and environmentally friendly practices.
  • Government Support: Encouraging government support is vital for the rubber industry's growth. Governments can provide subsidies and incentives for rubber cultivation, infrastructure development, and research initiatives. Access to credit and insurance for rubber farmers can also help stabilize their income and provide a safety net in times of adversity.


  • The rubber industry in India is vital for its economic contributions, foreign exchange earnings, and industrial use. However, it faces challenges such as pests, price volatility, and environmental concerns. To ensure its sustainable growth, India must focus on research, market diversification, sustainable practices, farmer empowerment, and government support. By taking these steps, India can strengthen its position in the global rubber market while promoting environmentally responsible and economically viable rubber production practices.

 Must Read Articles:

RUBBER PLANTATION: https://www.iasgyan.in/daily-current-affairs/rubber-plantation

NATURAL RUBBER:  https://www.iasgyan.in/daily-current-affairs/natural-rubber

RUBBER BOARD: https://www.iasgyan.in/daily-current-affairs/rubber-board


Q. What measures are being taken to enhance the sustainability of rubber production in India, considering challenges like price fluctuations and environmental impacts? How is the Rubber Board collaborating to expand rubber cultivation in Northeastern states, and what are the expected economic benefits? How can India diversify its rubber markets and reduce dependency on global price volatility?"