Page 147 - Contributed Paper Session (CPS) - Volume 4

CPS2160 Aye Aye Khin et al.
along with the strength and importance, as a part of India’s burgeoning role
in the global economy. India is the fourth world largest’ producer, second
largest consumer of NR and also one of the fastest growing economies
globally in 2017. There were around 4,600 registered units are manufacturing
rubber products with contributing 40 billion Rupees to the government
economies. The government of India offered funds to research and
development centres to support the rubber industries and end users to
improve the quality of rubber products. Government of India also promoted
the development of rubber industry by offering manufacturing facilities and
technology knowledge (Sabu, 2017).
Demand of natural rubber has grown at a fast pace in past few years in
China, both supply and demand will continue to grow in next decade. Global
and China NR Industry Report (2017) stated that China was also one of the
world’s largest producers and consumers of NR, and 77.9% of rubber was used
for redial tyres. Production of NR in China was about 764,000 tonnes in 2016, it
was around 6.2% of the global output in the market. China NR manufacturers
are mainly large-sized agricultural reclamation and rubber groups, represented
by Sinochem International, China Hainan Rubber, Guangken Rubber and
Yunnan State Farms Group. According to Freedonia Focus Reports Rubber in
United States (2017) stated that the demand of rubber in USA forecast to reach
8.9 billion USD in 2021. Main of the demand of NR of USA was needed from
tyre manufacturing and re-treading represents, both of the sectors was
accounting around three-fifths of domestic rubber consumption. Malaysia
Rubber Export Promotion Council has reported that the biggest markets are
USA, Germany and Japan for the rubber products from Malaysia. It indicates
28% for USA, 7% for Germany and 6% for Japan, which accounts for more than
40% of total exports of Malaysia’s rubber products. China, UK, Brazil, and
Australia are also those that impact the Malaysia’s export of rubber products
(MREPC, 2017).
The trends of the NR import demand of China, India, USA and Japan shows
in Figure 1. As seen in the figure, China is the largest NR importer as compared
to other three countries. China’s NR import demand as been inclining since
year 2003 up until year 2016 making them the largest NR importer as
compared to India, USA and Japan. India is the lowest NR importer as seen in
the graph. According to Kannan (2013), he said that India’s share in the
production of NR was increasing over the years making them the fourth
largest NR producer after Malaysia, Thailand and Indonesia. USA and Japan
has a neutral import demand of natural rubber, however, there was a sharp
decline in 2009 due to the great recession which affecting the US trade
substantially (Ravikumar et al., 2017).

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