Perspectives on Business Management,
Economics & Information Technology (PBMEIT)
Now also covers research on Psychology
| Perspectives on Business Management, |
| Home | About PBME | PBMEIT Conference | Scope | Indexing | Editorial Team | Call for Chapters | Authors Guidelines | Global Research Perspectives |
PBME Volume III ISBN: 978-81-951151-1-2
Author(s): APARNA MERIN MATHEW 
Abstract
The world trend of rubber production is on the increase with Thailand, Indonesia and Malaysia as the leading world producers. The general increase in rubber production in the world is in agrees with its demand growth. This may be due to an increase in world technology especially the automobile industries which require more of rubber as raw material. But the production and consumption of natural rubber show a declining trend than that of synthetic rubber. The price of natural rubber, once a major driving force in the exploitation of rubber has now become the disincentive to tapping turnout. With price sustaining at a low level, the livelihood of rubber farmers had been hard hit for a long period and makes their future uncertain. Many of the rubber farmers have left the industry looking for greener pastures. Those who stayed back demand a solution for the predicament they are facing.
Secondary data was used for analysing the trend of Rubber production. The study is based on secondary data collected from various sources such as articles published in journals, websites. Data regarding the quantity of rubber produced annually by 35 rubber producing countries in the world for 56 years from 1961 to 2017 is taken. CAGR and percentage share of each rubber producing countries were determined. For analyzing the price movements of natural rubber, price of rubber in the global market from 1990 to 2019 is taken and analyzed. For analysing the growth and consumption of synthetic rubber data’s were taken from the period between 2000-2017.
The global production of natural rubber shows an increasing trend in the early period and declined over time. The production and consumption of synthetic rubber show an increasing trend than that of natural rubber which accounts to only 46 percent of the world consumption as compared to synthetic rubber consumption which is 54 percent of global consumption. Price of natural rubber in the global market is always fluctuating. Since 2012 there is a decreasing trend in the price of natural rubber in the global market that is US$3.93 in 2012 decreased to US$1.72 in the year 2019.
The outcome of this study has the potential to influence natural rubber production in the world. The low demand and price for natural rubber hit the livelihood of rubber farmers for a long period and makes their future uncertain and they demand a solution for the predicament they are facing.
Keywords: rubber, production, price, synthetic rubber
JEL Classification: R14, Q1
Download Full Paper (PDF)
© 2020-2024 Perspectives on Business Management & Economics (PBME)