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BY

Group 1

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y INTRODUCTION

y MARKETABLE FORM OF RUBBER

y INDIAN RUBBER MARKETING SYSTEM

y DISTRUBUTION CHANNEL

y PROBLEM & CHALLENGESy IMPROVED VALUE CHAIN

y SUGGESTION TO IMPROVED VALUE CHAIN

y CONCLUSION

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Introductiony India is 3rd largest producer, 4th largest consumer of NR &

5th largest consumer of NR & SR.

y With 6000 units with turnover Rs 200 billion contributingRs 40 billion to national exchequer through taxes & duties.

y

Presently 0.63 mt of production & project 1 mt in nearfuture.

y 98% rubber comes from S.India

contd..

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y Out of which, 94% is from Kerala.

y In this dominancy of small holders is 86% & estate

contributes only 14%.y Mostly cultivated in Kerala, Tamilnadu , Karnataka &

N. E. Region

y In India NR is a controlled & regulated commodity, asits production, processing, marketing & consumptionis carried out in accordance with statutory provisions.

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Marketable Forms of RubberForm Share

Ribbed Smoked Sheet (RSS) 72.1

Latex Concentrates 10.7

Technically Specified Rubber (TSR) 9.9

Pale Latex Crepe 0.3

Estate Brown Crepe & Others 7.0

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Indian Rubber Marketing Systemy NR market in India is Oligopsonic in structure

y Structure of market for sheet rubber in India basically 3tier system of dealer

y Salient features of NR marketing arey Logical consequences of sectoral & geographical

concentrations of production.

y Market orientation.

y

Govt control/intervention in the market. .y Mostly 47% is consumed by automobile industry.

y Per capita consumption in India 800gm against 12 14 kgin Europe, Japan & US.

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Distribution System By Small

Holdersy Small holders are not favourably placed in the market

because of non flexibility in prod.mix.

y They sell their produce in the form ofy RSS

y Latex

y FC.

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Existing Distribution Systems

RSS Latex FC

Rubber

marketingcooperatives

Town level

dealers

Village LevelDealers

KSCRMFTerminal

dealers

Collectiondepots of

RPS/Cooperatives

Collectiondepots of

proc../ Pvtdealers

Unlicencedtraders

RPS/Cooperatives

Licenceddealers

Processors

Rubber Prod

Manufacturers

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Marketing by Estates

y Improved marketing system with better pricerealization.

y Have their own centralised marketing set up which

helps them to make direct sales to consumers.y Directly sell sheets to purchase depots of

manufacturers or to terminal dealers in kottayam/cochin.

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Estates

Town leveldealers

Ownprocessing

units

Otherprocessing

units

AgentsTerminaldealersAgents

Rubber

productmanufacturer

RSS FCLatex

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Problems & Challengesy Major problem is wide fluctuation of price in NR marketing.

y Also problem of future trading in India, which is integral part ofmarketing system in other country.

y Problem of grading and price margin by village level dealer.

y Problem of grading & packaging by town level dealer.

y Bottleneck in transportation.

y Increase in labour cost for loading & uploading in terminal

markets.y Problem of licensing to buy a produce by small dealer /

processor.

y Problem of illicit trading.

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IMPROVED VALUE CHAIN

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MARKETING CHANNEL FOR SMALLHOLDERS

RUBBER

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EXTERNAL MARKETING OPEN & DIRECTTRADING

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y Direct trading between producers and consumers(especially tyre-making consumers) help in growth andbetter consistence & tailoring of consumer needs

y Indian rubber industry should take malaysian marketingstructure.

y Improves the direct export.

yAvoiding illicit trading.

y Minimises the labour cost.

y Setting up village level processing unit & storagefacilities.

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Conclusiony Indian rubber industry is unique with 1 million

producers with 3 tier marketing system.

y Rubber board provides technology, training &market assistance.

y Small holders are dominant & they formcooperatives to market their rubber.

y 60% tribal families of S.India are engaged in

rubber production with support from the govt &different cooperative agencies.

y Improvements have been done by the govt toimprove the rubber market in N.E. India also .

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THANKYOU