Sources of output Growth and Variability of Natural Rubber in India

Abstract

Natural rubber is one of the most significant polymers for the human society. One which supplies raw materials for the many sectors i.e., industrial, medical, agriculture, automobiles, aircraft, railways, textile industries, sports, and engineering sectors, and even for the construction of buildings and roads, etc. Due to its multifarious uses, the consumption of natural rubber in the world as well as in India has been increasing steadily. Hence based on the importance of the crop, the present study examined the sources of output growth and variability of natural rubber in India using secondary data for the period of 2007-08 to 2021-22 with the help of statistical and econometrical tools i.e., compound annual growth rate, decomposition model, and Cuddy - Della Valle index (CDVI). Growth in the area of natural rubber in India has increased with a positive and highly significant rate of 4.23 percent per annum, while negative and significant growth was observed in production and productivity of the same. Decomposition analysis indicated that the area effect was the prime contributor to the increase in the production of rubber. Variability of natural rubber in the area, production, and productivity was found to be 5.36, 11.16, and 3.21 percent, respectively for India.