For over 30 years, Babu Joseph, a smallholder farmer from Kerala, southern India, has cared for his rubber trees. Once a thriving sector supporting thousands of small producers, the rubber industry in Kerala has been in decline over the past decade as prices fell sharply and production costs rose.
“Rubber was once Kerala’s most profitable crop, but over the last decade, prices have plunged,” Joseph said, adding that many farmers have abandoned their plantations because the business has become unprofitable.
A Declining but Labor-Intensive Industry
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Tapping rubber is labor-intensive work. Skilled workers must make careful incisions in the bark of trees at precise depths to extract latex without damaging the tree — a process repeated every few days.
With falling prices and rising wages, profit margins have eroded, making rubber cultivation less attractive.
India’s rubber production peaked at 913,700 tons in 2013, according to the Rubber Board of India, before falling to 562,000 tons in 2016. Production has since rebounded modestly but remains far below its 2013 peak. At that time, global natural rubber prices hit 540 cents/kg; today, they hover around 130 cents/kg.
Rising Demand and Import Pressure
Even as production declines, domestic demand for natural rubber in India continues to surge. About 70% of India’s rubber is consumed by the tire industry, which has expanded rapidly in recent years.
Rajiv Budhraja, Director General of the Automotive Tyre Manufacturers Association (ATMA), said:
“Consumption is growing faster than production. The widening gap between the two is a major concern for India’s rubber sector.”
He emphasized that tire manufacturers prefer domestic sourcing to reduce import dependence and align with the Make in India initiative.
Prasad Purushothama from the Rubber Board added that imports hurt local producers because international prices are usually lower, pushing domestic prices down further.
Expansion Projects and New Plantations
To tackle the supply gap, four ATMA members are partnering with the Rubber Board to develop 200,000 hectares of new rubber plantations across Northeast India and West Bengal.
“The project is progressing well. Within 4–5 years, the Northeast is expected to emerge as a major natural rubber production hub,” Budhraja said.
Innovation and Technology for Revival
India is also experimenting with biotechnology to future-proof its plantations.
In Assam, researchers are cultivating the world’s first genetically modified (GM) rubber trees, designed to withstand extreme weather — heat, cold, and drought.
Jessy M.D., Deputy Director of the Rubber Research Institute of India, said:
“Genetic modification is the future of rubber cultivation. It enhances clonal varieties beyond what conventional breeding can achieve — crucial as Kerala faces changing weather patterns.”
Mechanization on the Rise
Technology is also helping farmers combat labor shortages.
Chinmayan M.K., a grower in Kerala managing an 18-acre plantation, has replaced traditional tapping methods with motorized tapping machines.
“These machines are expensive, but they are far more efficient. Even unskilled workers can use them after minimal training,” he said.
Mechanization has boosted productivity by 60% and cut costs by 40% on his farm.
“At first, I was hesitant, but now my entire plantation runs on machines,” Chinmayan said. “Innovation is the only way to revive Kerala’s aging plantations.”
Outlook
India’s rubber sector stands at a crossroads — battling low prices, aging trees, high labor costs, and climate uncertainty. However, new plantations, genetic research, and mechanization offer a glimmer of hope that the country may yet reclaim its position as a leading natural rubber producer in Asia.