The consumption of Indian rubber in the year to April 2010 is expected to be 881,000 tonnes, which is little higher than the estimate of 875,000 tonnes that was made before. And the reason for this is the growing demand of automobile in the country.
As per the opinion of Toms Joseph, an economist with the state-run Rubber Board, India will become a bigger player in the international market because of the rising demand in India, world's third-biggest consumer of rubber behind China and the United States. After a modest rise of 1.2 percent in the year ended March 2009 the domestic demand has been rising.
"We are ready for a very prominent position in the world by becoming the second-largest consumer of rubber soon. If we try to see production and import figures of the last five years, 99 percent of the domestic production has been consumed within the country. I do not see any problem in meeting any rise in demand," Joseph said.
In the month of August India's car sales rose by a quarter from a year earlier. The local demand for rubber may not help imports much, as local production was also rising and tyre firms ship in rubber duty free on the clause that the end products made of imported commodity should be exported.