The changes experienced by natural rubber sector in India during the globalisation period and its consequent challenges are examined. The analysis has been carried out with respect to change in the price and production performance in the country since 1980. The results suggest that there is an increased volatility in prices after economic reforms. There has been a deceleration in tapped area, production, and yield of natural rubber. The drastic decline in yield as compared to other natural rubber producing countries raises questions on the capability of the existing institutional structure.