China offers insurance to rubber producers to encourage planting, output
CHINA’S government said on Monday (Dec 11) it has started offering insurance for natural rubber producers, to encourage higher output and increase the country’s self sufficiency rate in producing the latex used to make tyres.
CHINA’S government said on Monday (Dec 11) it has started offering insurance for natural rubber producers, to encourage higher output and increase the country’s self sufficiency rate in producing the latex used to make tyres.
The scheme for producers in Hainan and Yunnan provinces, the main rubber producing regions, will stabilise producers’ income and increase planting acreage to boost the country’s rubber production, according to a joint statement by the finance ministry, agriculture ministry and the National Administration of Financial Regulation dated Dec 8.
China is the world’s largest natural rubber consumer and a significant importer. Its domestic supplies so far only fulfil a fraction of its needs.
The country is expected to produce 836,000 metric tons in 2023 and up to 910,000 by 2030, Jom Jacob, co-founder of India-based analysis firm What Next Rubber, said.
“Trees attaining tappable maturity until 2030 are already planted. It means, production capacity cannot be increased for the period up to 2030 as newly planted rubber trees have a long gestation period,” he said.
The insurance covers rubber seedlings and trees against natural disasters, major diseases, pests and rodents, accidents, wildlife destruction and other risks faced by rubber seedlings or rubber trees, the government said.
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