Contemporary dynamics of natural rubber: Performance, trends and support measures in key producing nations.
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TextPublication details: Rubber Science, 37(1): 2024. 86-101.Subject(s): Summary: The livelihood of millions of families in major rubber-producing countries depends on natural rubber (NR) cultivation. Early 21st century’s high NR prices gave way to a sharp decline in the following decade, leading to abandonment of plantations, new planting and replanting of NR thereby reducing yield in many traditional NR producing nations. The declining enthusiasm in NR farming poses serious challenges for ensuring sustainable NR supply against growing demand. Institutional support play a pivotal role in sustaining NR production during price downturns. This paper examined trends and patterns in NR cultivation, production and consumption in major producing countries using time series data from 2001 to 2022. Additionally, it analyzed the support measures implemented during the period of price fall by the major NR producing countries. The study revealed diverse patterns and highlighted the need for robust support measures. Direct price support mechanisms, specifically those implemented in India, Malaysia and Thailand guaranteeing a minimum price for NR, have gained significant traction and endorsement. While these measures provide short-term relief to farmers, their long-term sustainability and financial feasibility warrant careful consideration. This study suggested that as global demand for NR rises, strategic interventions are imperative to navigate price volatility and ensure the resilience of NR cultivation.
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RRII Library | Not for loan |
The livelihood of millions of families in major rubber-producing countries depends on natural rubber (NR) cultivation. Early 21st century’s high NR prices gave way to a sharp decline in the following decade, leading to abandonment of plantations, new planting and replanting of NR thereby reducing yield in many traditional NR producing nations. The declining enthusiasm in NR farming poses serious challenges for ensuring sustainable NR supply against growing demand. Institutional support play a pivotal role in sustaining NR production during price downturns. This paper examined trends and patterns in NR cultivation, production and consumption in major producing countries using time series data from 2001 to 2022. Additionally, it analyzed the support measures implemented during the period of price fall by the major NR producing countries. The study revealed diverse patterns and highlighted the need for robust support measures. Direct price support mechanisms, specifically those implemented in India, Malaysia and Thailand guaranteeing a minimum price for NR, have gained significant traction and endorsement. While these measures provide short-term relief to farmers, their long-term sustainability and financial feasibility warrant careful consideration. This study suggested that as global demand for NR rises, strategic interventions are imperative to navigate price volatility and ensure the resilience of NR cultivation.
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