Indonesia to boost Rubber production to make up growing supply deficit

JAKARTA (Commodity Online): Global rubber shortage may surge by over 1 million tons by 2020 on the back of rising demand from the automobile makers. To make up the supply demand deficit, Indonesia planned to boost productivity by 44.5% to 1,300 kg/year for every hectare by 2015.

According to Dr Evans, Secretary General, International Rubber Study Group (IRSG), the demand from the tyre makers may touch 16.5 million tons by 2020 and overall global rubber consumption (including natural as well as synthetic rubber) is projected at 35. 9 million tons.

Indonesia, is the second largest producer of rubber after Thailand, may spend around $528 million to boost productivity of the state-run natural rubber plantations.

According to Association of Natural Rubber Producing Countries (ANRPC), Indonesia’s rubber production may rise by 8.2% to 3.26 million tons in 2012.

Presently according to analysts, the global rubber futures are likely to stay down this week (23rd July to 28th July). And the price is the commodity is likely to trade in the range of 220 to 250 yen a kg in Tokyo Commodity Exchange (TOCOM).

The rubber for July delivery, in TOCOM, traded down 11 yen to 223 yen per Kg and In India’s National Multi Commodity Exchange (NMCE), the commodity traded at Rs 17677 per qtl on 23rd July at 12:35 IST.

Source: http://www.commodityonline.com/news/indonesia-to-boost-rubber-production-to-make-up-growing-supply-deficit-49329-3-49330.html