India’s natural rubber economy needs a diversified sourcing model that balances the interests of growers, manufacturers and exporters, according to the All India Rubber Industries Association (AIRIA). Anay Gupta, president of AIRIA, said Kerala should continue to remain the country’s primary rubber-producing state, while the Northeast could emerge as a significant second production hub. Imports should serve as a transparent mechanism to bridge structural supply gaps and stabilise availability during periods of market volatility, he said.
According to Gupta, India consumed approximately 1.41 million tonne of natural rubber in 2024–25, while domestic production remained significantly lower, leaving a structural supply gap of more than half a million tonne. He said managing this imbalance requires looking beyond the question of whether India produces enough rubber in aggregate.
Managing this imbalance requires looking beyond the question of whether India produces enough rubber in aggregate. The more important considerations are where the rubber is produced, in what grades, how consistently it is processed, how efficiently it reaches manufacturing clusters and whether alternative sources remain available during geopolitical, climatic or logistical disruptions.
Grade and location matter more than volume
“An increase in national production does not automatically eliminate shortages of specific grades or ensure timely availability in every manufacturing location,” Gupta said, adding that building resilience therefore requires more than increasing domestic production.
The non-tyre sector is particularly vulnerable to supply disruptions because it comprises several micro, small and medium enterprises (MSMEs) manufacturing:
- Hoses
- Seals and gaskets
- Conveyor belts
- Footwear
- Medical products
Their raw material requirements vary significantly, with some depending on natural rubber latex, while others require RSS grades, technically specified rubber (TSR), specialty synthetic elastomers or specific rubber compounds, according to AIRIA.
Northeast expansion under the INROAD project
On tyre companies looking beyond Kerala for natural rubber sourcing, Gupta said the shift towards the Northeast could fundamentally alter India’s rubber map. The Northeast expansion is being pursued under the INROAD project.
Under the INROAD project, rubber plantations were envisaged over 200,000 hectares across the Northeast and West Bengal. By the 2025 planting season, around 179,376 hectares had reportedly been planted, benefiting more than 207,000 growers.
| Metric | Value |
|---|---|
| India natural rubber consumption, 2024–25 | ~1.41 million tonne |
| Structural supply gap | more than half a million tonne |
| INROAD plantation target | over 200,000 hectares |
| Area planted by 2025 planting season | ~179,376 hectares |
| Growers benefited | more than 207,000 |
Support mechanism: why a conventional MSP may not fit
On renewed demands for a minimum support price (MSP) or price-support mechanism, Gupta said growers need income stability because natural rubber is a long-gestation crop and tapping decisions are highly sensitive to prices, labour costs and weather.
However, he said a conventional procurement-based MSP may not be suitable for natural rubber, which is traded in multiple grades and forms. Quality, moisture, contamination and processing standards directly affect value.
AIRIA would instead favour a carefully designed price-deficiency or income-support mechanism. Under such a system, eligible small growers could receive the difference between a scientifically determined reference price and the prevailing market price, subject to quantity, quality and traceability conditions. Support should also be linked to replanting, productivity improvement, rain-guarding, disease management, scientific tapping and farmer aggregation, according to Gupta.
One rubber value chain
“India needs a balanced framework like remunerative returns for growers, predictable raw-material availability for manufacturers and internationally competitive input prices for exporters. Producer and user interests should not be treated as opposing interests; both are essential parts of the same rubber value chain,” Gupta said.
For commodity traders and procurement teams, the association’s position ties India’s natural rubber security to grade-level availability, processing consistency and the availability of alternative sources during geopolitical, climatic or logistical disruptions — factors that will determine how the country’s rubber map evolves as the Northeast matures into a second production hub.
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