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Rubber output in India to fall due to torrential rains  

Friday, August 17, 2018

Kerala, India - Rubber output in India, the world’s sixth biggest producer and second largest consumer, is likely to fall 13.5 percent from a year ago to 600,000 tonnes in the fiscal year to March 2019, according to N. Radhakrishnan, a dealer and former president of Cochin Rubber Merchants Association due to torrential rains. “In July rubber production was hit by rains. Now with the situation worsening in August, farmers again cannot tap rubber trees,” Rajiv Budhraja, director general of India’s Automotive Tyre Manufacturers’ Association, told Reuters. With industry officials saying that a quick rebound in local rubber output is unlikely, tire makers like MRF (MRF.NS), JK Tyre (JKIN.NS), Apollo Tyres (APLO.NS) and Ceat (CEAT.NS) will have to rely more on imports. That could lift India’s imports to a record 500,000 tonnes due to high demand from tire makers, Budhraja said. Higher imports by India could support global rubber prices and lift shipments from major exporters like Thailand, Malaysia, Indonesia and Vietnam


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