Philippines to increase natural rubber acreage to boost production

MANILA (Commodity Online): On the back of rising demand and high global rubber prices, Philippines aiming increase the acreage under cultivation to boost natural rubber production.

According to Department of Agriculture (DA), the country is planning to increase the area under rubber cultivation to 200,000 hectares by 2016 from present 138,710 hectares.

The Board of Investment (BOI) has approved the rubber plantation project and is expected to generate more revenue and jobs.

Country’s total rubber production was around 395,237 metric tons and almost 70 percent of the country’s rubber production is exported to other countries.

Philippines is one of the members in Association of Natural Rubber Producing Countries (ANRPC).

Presently, the natural rubber market is reviving on cooling global economic crisis and lower supplies. The demand mainly from India and China.

Thailand, Indonesia, India and Malaysia are the top four producers of natural rubber.

Global natural rubber production during 2011 was up 8.2% to 10.26 million tons, up from 9.48 million tons in 2010,while consumption is expected to increase by 3.5% during 2012.

The demand from ANRPC members accounts for 57% of the production may grow 4.4% to 6.37 million tons this year.

In Tokyo Commodity Exchange (TOCOM), the rubber for march delivery traded at 322 yen per Kg on 1st March.

While, in India’s National Multi Commodity Exchange (NMCE), rubber for March delivery traded at Rs 18720 per ton on Friday at 12:25 IST.

Source: http://www.commodityonline.com/news/philippines-to-increase-natural-rubber-acreage-to-boost-production-46402-3-46403.html