India''s Synthetic Rubber Demand Outstrips Production.

New Delhi, (PTI) In sync with the trend in the previous years, India''s synthetic rubber demand has far outstripped production during the first quarter of the current fiscal owing to increased consumption from tyre makers.

During the April-June period of the current fiscal, while domestic production of synthetic rubber increased 8.9 per cent to 26,956 tonnes over the same quarter last fiscal, consumption grew 26.75 per cent to 99,160 tonnes, the Rubber Board data revealed.

"The increased consumption is because of the buoyancy in the country''s automobile markets. Of the total consumption in the April-June period of the current fiscal, 69,173 tonnes were consumed by the tyre makers," a Board official said.

Synthetic rubber serves as a substitute for natural rubber and is also increasingly being used in printing textiles. This rubber is made using raw materials mostly from the petroleum industry.

Mukesh Ambani-owned Reliance Industries is the leading producer of synthetic rubber in the country. Synthetics and Chemicals Ltd is also one of the major producers.

India had consumed 77,290 tonnes and produced 24,775 tonnes of synthetic rubber in the first quarter of 2009-10.

The demand-supply gap is bridged through imports, which have jumped by over 35 per cent to 76,948 tonnes during the April-June period over 56,625 tonnes in the corresponding period in 2009-10.

During the month of June, synthetic rubber output grew by nearly 5.5 per cent in the country to 9,254 tonnes from 8,776 tonnes in the same month last year. Consumption increased by 26.75 per cent to 33,235 tonnes in June this year.

India had produced 106,743 tonnes and consumed 347,710 tonnes of synthetic rubber in 2009-10 fiscal.

Source news.in.msn.com