The production of natural rubber would be increased through expanding planted area, accelerating rubber plantation development programmes in non-traditional regions, including the Northeast.
There appears to be no respite in the near term from surging rubber prices in India due to shortage of supplies and delayed imports. Abnormal fall in production in Thailand is adding to the problem. The robust demand for tyres in an election year will put pressure on the sector.
Ceat Tyres: The company hiked prices of its tyres for a second straight quarter. This helped it push its profit margins up to 6.1% from 1.3% a year ago, even as prices of raw materials rose this quarter. Rubber prices, the key ingredient in tyre-making, ended higher in the quarter, responding to the rise in crude oil prices. Total expenses rose 2.5%, with raw material costs shooting up nearly 3%.