HomeAgriculture NewsIndia's rubber production — how the tyre industry's collaboration can help achieve self-sufficiency

India's rubber production — how the tyre industry's collaboration can help achieve self-sufficiency

As the country's automotive market booms, breaking through the four-million threshold to post record sales last year, tyre companies and the government are working on a war-footing to increase domestic rubber production to meet the consequent surge in demand. The idea is to reverse the growing reliance on rubber imports and make our tyre industry truly indigenous and even more competitive globally, writes JK Tyre's Managing Director Anshuman Singhania.

Profile imageBy Anshuman Singhania  May 14, 2024, 9:51:41 AM IST (Updated)
3 Min Read
India's rubber production — how the tyre industry's collaboration can help achieve self-sufficiency
India is aiming to drastically ramp up local rubber cultivation to meet growing demand for the commodity. The tyre manufacturers are collaborating with the government, farmers and other stakeholders to boost domestic rubber production and reduce the industry’s reliance on imports. 



The tyre industry accounts for over 70%, or 13 lakh metric tonnes of India’s annual natural rubber (NR) consumption. But, the country’s plantations produce just eight lakhs metric tonnes of the commodity. Tyre companies, as a result, are left with no choice but to turn to imports to bridge this deficit, with roughly 40% of their consumption needs met by rubber shipped in from overseas. So, India is consequently the world’s second-largest importer of rubber. 

As the country's automotive market booms, breaking through the four-million threshold to post record sales last year, tyre companies and the government are working on a war-footing to increase domestic rubber production to meet the consequent surge in demand. The aim is to become Atmanirbhar so all of the tyre industry’s needs can be met through locally sourced rubber.

The only way to do this is to expand the area under rubber cultivation. In recognition of this, the collaboration between the tyre industry and the government has resulted in a project called Indian Natural Rubber Operations for Assisted Development, more commonly known by its far catchier acronym —INROAD. 

The INROAD project, guided by the Ministry of Commerce and Industry, aims to expand rubber cultivation to two lakh hectares in India’s North East, extending beyond its traditional base in Kerala. 

To increase the production of natural rubber in FY 22–23, JK Tyre, along with other leading tyre manufacturers, have pledged to invest 1,100 crore. This investment will be made in the next five years to boost natural rubber production in eight Indian states. From the total investment, 100 crores will be spent on improving the quality of natural rubber production by implementing best practices, skilling, and training.

Operational for three years, the INROAD project recently hit a notable milestone, with 70,000 hectares brought under natural rubber cultivation, with over three crore trees, benefitting nearly 80,000 beneficiaries across 93 districts in the region, planted. Once completed, this pioneering project, the first of its kind globally involving country's tyre manufacturers and government agencies, will benefit 250,000 farmers.

Generating employment opportunities and livelihood security for the farmers and also improving the socio-economic status of the community is, after all, a key objective of the project. Increased industry collaboration will certainly make a big impact.   

JK Tyre, for instance, has made an impact in its own way through its involvement in the INROAD project. With self-sufficiency and sustainability at its core, the company has initiated a number of projects to support rubber farmers in non-traditional regions of North-East India.

These efforts include conducting educational and training campaigns for thousands of farmers, skilling rubber tappers, and promoting rain-guarding practices that resulted in increased productivity, income, and better product quality. Also, the training provided for workers and graders of rubber dealers has significantly boosted natural rubber sourcing and improved the livelihoods of farmers in the region.

Just as significant will be the benefits for India and its tyre industry. By reversing the growing reliance on imports, it will make our tyre industry, already an export powerhouse, truly indigenous and even more competitive globally. Moreover, it will empower it to support our national goal to attain self-sufficiency.



The author, Anshuman Singhania, is Managing Director, JK Tyre & Industries. The views expressed are personal.

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