NATURAL RUBBER PRODUCED IN INDIA

Natural rubber - This includes all material made from or containing latex.
Natural rubber is made by two processes, the natural rubber latex process
(NRL) and the dry natural rubber process (DNR)

Natural rubber is an Indian product produced primarily in three countries:

 Thailand
 Malaysia
 Indonesia

The following are the specifications scheme for each country:

 STR : Standard Thai Rubber

 SMR: Standard Malaysia Rubber
 SIR : Standard Indonesia Rubber

With around 6000 unit comprising 30 large scale, 300 medium scale and
around 5600 SSI/tiny sector nits, manufacturing 35000 rubber products,
employing 400 hundred thousand people, including around 22000
technically qualified support personnel, with a turnover of Rs.200 billions
and contributing Rs.40 billions to the National Exchequer through taxes,
duties and other levies, the Indian Rubber Industry plays a core sector role
in the Indian national economy. The industry has certain distinct advantages
like:

 An extensive plantation sector

 Indigenous availability of the basic raw materials, like natural rubber,
synthetic rubber, reclaim rubber, carbon black, rubber chemicals, fatty
acids, rayon and nylon yarn and so on.
 A large domestic market.
 Availability of cheap labor.
 Training facility in various technical institutes.
 On-going economic reforms.
 Improved living standards of the masses.
India is the third largest producer, fourth largest consumer of natural rubber and
fifth largest consumer of natural rubber and synthetic rubber together in the
world. Besides, India is the world's largest manufacturer of reclaim rubber. In
fact, India and China are the only two countries in the world which have the
capacity to consume the entire indigenous production of natural rubber and
thereby obviate the compulsion and over dependence on exports of surplus
quantity of natural rubber. The plantation sector with an estimated production of
over 630 hundred thousand tones of natural rubber and a projected production of
more than one million tones in near future, helps radical and rapid growth of the
Indian rubber industry. The growth prospect is further enlarged by a boom in the
vehicle industry, improved living standards of the masses and rapid over-all
industrialization. The per capita consumption of rubber in India only 800 grams
against 12 to 14 kilos in Japan, USA and Europe. This envisages tremendous
growth prospects of the industry in the years to come as India is far from attaining
any saturation level, so far as consumption of rubber products is concerned.
Range of products

The wide range of rubber products manufactured by the Indian rubber industry
are -

 Auto tyres
 Auto tubes
 automobile parts
 footwear
 belting
 hoses
 cycle tyres and tubes
 cables and wires
 camelback
 battery boxes
 latex products
 pharmaceutical goods

Main sectors

The rubber industry in India is basically divided in two sectors - tyre and non-tyre
sector produces all types of auto tyres, conventional as well as radial tyres and
exports to advance countries like USA.
The non-tyre sector comprises the medium scale, small scale and tiny units. It
produces high technology and sophisticated industrial products. The small scale
sector accounts for over 50% of production of rubber goods in the non-tyre sector.
Going by share of rubber consumption, automotive tyre sector is the single largest
sector accounting for about 50% consumption of all kinds of rubbers, followed by
bicycles tyres and tubes 15% footwear12%, belts and hoses 6%, camelback and
latex products 7%. All other remaining rubber products put together account for
10%.

Exports

India's exports of rubber products, including tyres exceed Rs.2000Crores.

The range of products exported are -

 Automotive tyres and tubes

 Rubber and canvas footwear
 Cycle tyres
 Pharmaceutical goods
 Rubber hoses, cots and aprons
 Belts and beltings
 Sheeting

Market Influencing Factors

 The rubber production fluctuates between months and it is normally low

during the rainy season.

 Growth in industrial production: automobile industry.

 The ratio of utilization of domestic production and imported rubber by tyre

manufacturers.

 Government policies have a profound influence on rubber prices. These

include subsidies, restrictions on ports etc.

 International rubber price movements, have a slow influence.

 Stockists and speculators also play a significant role in influencing prices.

 SWOT ANALYSIS OF NATURAL RUBBER IN INDONESIA
STRENGTH

Natural rubber has been and will stay as an important export product for
Indonesia. The country is currently the second largest producer of natural
rubber in the world after Thailand. Projection of production, domestic
consumption and export up to the year 2010

In recent years, natural rubber producers have been working together with
major consumers, particularly the global tyre industries and shipping
companies to bring natural rubber to cope with the requirements of the
modern tyre industry. Basically these requirements can broadly be
categorized into three Cís, namely: Cleanliness, Consistency and Cost-
effectiveness.Cleanliness obviously means freedom from dirt or foreign
matter contamination. Consistency sounds pretty straightforward, although
the true interpretation can vary substantially with different users. In
general, consistency means constant quality of raw materials, steady
processing conditions and good packaging practices. With regard to Cost-
effectiveness, natural rubber price must be kept competitive to maintain its
market as a ëbulkí or general purpose elastomer.

WEAKNESS

In Indonesia, the most serious drawback is the fact that smallholder coagula in
the form of unsmoked sheets, slabs or lumps are purchased at the farm gate on
wet-weight basis. This trading practice has resulted in a tendency for the farmers
to retain as much moisture as possible within the coagulum by soaking and/or
inserting bark slivers and other moisture retaining stuff.

OPPORTUNITY

SIR manufacturers in Indonesia will be required to adopt a quality management

system in order to receive product certification according to the Indonesian
National Standard or SNI. This has become mandatory and has been decreed by
the Minister of Trade and Industry on 22 June 1996. The decree stipulates each
manufacturer to adopt either ISO 9001,ISO 9002 or Module I quality management
system. Most of SIR processors have opted to adopt the Module I system, which is
the most simple quality system based on ISO 9000-series elements for self
assessment, designed particularly for small and medium scale enterprises in
anticipation of ISO 9000 certification later on.
THREATS

The ongoing development projects of the Government are carried out in the form
of packages of credit and cultivation technology to change the smallholder rubber
planting scheme known as 'jungle rubber', which is not very productive, into a
good block planting scheme with good management and high productivity. The
limited development funds provided by the Government, and the difficulties to
obtain soft loans from international sources like the World Bank and Asian
Development Bank for the expansion of the projects, will be disadvantageous to
the expansion of smallholder rubber, which is the backbone of Indonesian rubber,
in the future. The jungle rubber system is a low-input agro forestry system in
which rubber competes with the regrowth of the natural forest

CONCLUSION

The cooperation will develop ways to convert rubber jungles into an agro forestry
system that sustains both environmental conservation and rubber farmers
livelihood. Pilot projects have been started in West Kalimantan (Sanggau and
Sintang), Jambi (Muara Bungo) and West Sumatra (Pasaman) in 1995. These pilot
projects will manage the rubber jungles intensively by planting high yielding
clones which are suitable for the rubber forest system.

ASSIGNMENT
ON
SWOT ANALYSIS OF NATURAL
RUBBER
IN INDONESIA
 SUBMITTED
BY :-
RAJENDRA
KUMAR JENA
DSBSPGDMA09032