India’s Natural Rubber Output Increases 6.7% on Price

India’s Natural Rubber Output Increases 6.7% on Price

March 5 (Bloomberg) -- Natural rubber production in India, the world’s fourth-biggest producer, increased 6.7 percent last month after record prices prompted farmers to boost yields in the main growing region, the state-owned Rubber Board said.

Production in February totaled 51,500 metric tons, compared with 48,259 tons a year earlier, G. Mohana Chandran, joint director at the board, said in an e-mailed statement. Production in the 11 months to February declined 4.3 percent to 780,750 tons, the board said.

Rubber prices in India jumped to a record this week on concern that the low-output season in the world’s largest producing nations will lead to a shortage. India’s rubber output may drop to 835,000 tons this year from 881,000 tons in 2008 because of adverse weather, intense harvesting last year and the age of plantations, Rubber Board Chairman Sajen Peter said in November.

India’s imports more than doubled to 157,980 tons in the April-February period from 71,025 tons a year earlier because of increased demand from tire makers, Chandran said. Exports in the April-February period slumped to 15,358 tons from 44,964 tons a year earlier.

Stockpiles rose 24 percent to 269,750 tons at the end of last month, compared with 216,780 tons a year earlier.