The present slump in rubber prices has prolonged challenging the sustainability of rubber cultivation in terms of its economic and social impacts.
Resilience is the very character of rubber and the sector is sure to regain its past glory, surviving the obstacles of the present recessionary trends as well as climatic variations, said KM Mammen, chairman, Automotive Tyre Manufacturers Association (ATMA) and CMD of MRF.
Delivering the inaugural address at India Rubber Meet (IRM) 2020, being held at Mamallapuram in Tamil Nadu, he said arrangements should be made to build up a strategic reserve of natural rubber, that can meet about a month’s requirement.
In his keynote address, Sawar Dhanania, chairman of Rubber Board said that natural rubber (NR) prices had seen both low and comfortable levels, on and off, over the decades. Sustainability had economic, social and environmental dimensions. The present slump in rubber prices has prolonged challenging the sustainability of rubber cultivation in terms of its economic and social impacts.
Pursuit to improve productivity, efficiency and competitiveness has to be an essential component of strategies in all economic sectors. However, the need for such efforts is more deliberated and acted upon during downturns as compared to better times.
Invention, innovation and technological modernisation across the value chain to enhance competitiveness of all the links in the chain should be one of the critical areas of consultations and cooperation. India Rubber Meet shall be a forum for further consultations in this regard and for stocktaking of achievements, he added.
KN Raghavan, executive director, Rubber Board said that IRM has already been branded as one of the major rubber events at international level, bringing all the stakeholders of Indian rubber sector on a single platform, along with world-renowned experts, for valuable interactions and fruitful networking.
The strategies to be pursued for recovery and resurgence in all economic sectors need to be consistent with the prevailing macroeconomic situation.
In the present liberalised and globalised economic context, the feasibility of protectionist support measures is limited. Therefore, the strategies for resurgence should focus on innovation which involves continuing research, exploring new areas and frontiers, pursuing new ideas, knowledge sharing and adoption of new technologies, he added.