The financial health of small and medium players in the Indian rubber industry may suffer a setback due to the impending shortage in natural rubber following floods in Kerala, according to Vikram Makar, senior vice-president, All India Rubber Industries Association (AIRIA).
Mr. Makar, who was in the city to promote the India Rubber Expo 2019, said that it was possible that the overall profitability of these units would be hit.
Natural rubber producers of Kerala, which produces 85% of India’s natural rubber, are bracing for a 25% crop loss ( over last year) in the wake of the unprecedented rains over last few months, according to a status report prepared by the United Planter’s Association of South India (UPASI).
“It is a great calamity and industry will suffer a temporary setback, but the small and medium players may take a larger hit,” Mr. Makar said, adding that large industries may resort to imports of synthetic rubber to tide over any raw material crisis. Mr. Makar is also the chairman and MD of Oriental Rubber Industries Pvt. Ltd. Rubber is also grown in Assam and Tripura, he added.
On the IRE, he said that, into its 10th year, IRE is AIRIA’s flagship event which will bring together industry professional across the globe. IRE 2019 is being held in January in Mumbai and is expected to see participation of around 300 exhibitors. An AIRIA statement said that this was Asia’s largest rubber exposition.