Agartala, Nov 20 (IANS) The government's allocation for the natural rubber sector is not enough for expanding the area under cultivation or enhancing production, according to Rubber Board of India chairman Sajen Peter.

'The allocation of funds by the union commerce ministry is too low for increasing cultivation and executing various schemes,' Peter told IANS in an interview.

'The central government approved Rs.135 crore (Rs.1.35 billion) for this financial year against the Rs.235.7 crore we proposed. Similarly, Rs.611 crore was allocated where originally the cost was projected at Rs.833 crore for the 11th Plan period,' he added.

According to Peter, India's natural rubber sector would also be hit by sluggish economic recovery, as elsewhere in the world.

'Except in China, worldwide the production of natural rubber in the first half of 2009 declined by over seven percent,' the Rubber Board chief said.

Malaysia's production fell almost 32 percent between January and June compared to that in the corresponding period last year -- the highest fall recorded over these months across the world.

This was followed by a 12 percent decline in Thailand, nine percent in India, seven percent in Vietnam and almost six percent in Indonesia.

India was the fourth largest producer of natural rubber in 2008 at 880,000 tonnes after Thailand, Indonesia and Malaysia.

However, while the top producers saw output declining, China's production rose 12.5 percent between January and June this year compared to the corresponding period in 2008.

'China's agro-climatic conditions help the country increase its natural rubber production,' Peter said.

An estimated 10.33 million hectares are under natural rubber cultivation globally -- mainly in six countries -- with Indonesia accounting for 32.5 percent, Thailand 23.3 percent, Malaysia 11.8 percent, China 7.3 percent, India 6.2 percent, Vietnam 5.9 percent and others 13.1 percent.

(Sujit Chakraborty can be contacted at sujit.c@ians.in)