Thailand is also looking at cutting down its production level by about five lakh tonne per year. Nearly 40,000 hectares of Malaysian rubber plantation will get converted into other profitable crops, resulting in contraction of supply of NR. According to the projections of the International Rubber Study Group based in London, world production of NR would be around 67.9 lakh tonnes in the year 2000. Consumption would be anywhere between 70 lakh tonne and 75 lakh tonne. The deficit would be met with the carry over stock of 18 lakh tonne spread over different rubber consuming countries across the world.

Global prices for general purpose synthetic rubber are around $700 per tonne as against $650 per tonne of NR. The SR prices are expected to go up further as oil prices are also on the increase. This will increase dependence on NR and will fetch better prices in Indian and international market for NR growers and traders. Since SR cannot be used in the gloves and family planning applications market, the demand for NR is likely to grow further. This will show a significant rise in prices, sources said.