New Delhi, Dec 29 (KNN) Rubber MSMEs (Micro, Small or Medium Enterprises) have demanded to put a ban over imports of rubber in a memorandum to Commerce Ministry for at least six months.

Indian Rubber Growers’ Association (IRGA) had met Union Commerce Minister Nirmala Sitharaman in New Delhi, seeking policy interventions as domestic price of rubber lingered at R139 per kilo, against R172 per kilo production costs incurred.

“Over a million farmers, mostly with small holdings, are engaged in rubber cultivation. To stop the exodus of rubber farmers to other crops, over falling profitability, growers’ association had sought banning NR imports for at least six months,” says IRGA general secretary Sibi Monipally. IRGA had also suggested that Centre should take focused policy measures to incentivize NR exports.

Whereas on the other hand, All India Rubber Industries Association (AIRIA), claimed that any step in this direction would be “anti-industry”.

“Domestic rubber production is far less than its demand. Restrictions placed on import of a critical raw material such as rubber strike at the very root of Make in India Initiative. India is grossly deficient in production of NR.
“Rubber imports are, therefore, inevitable for manufacturing,” says Kamal Chowdhury, President, AIRIA.

Where IRGA seems to put in front the pain of those farmers, who are the only working member of their family, AIRIA said that the imports for rubber is less comparatively less.

According to AIRIA, India’s levy of 25% import duty on NR is one of the highest in the county, on the other hand the import duty on import of rubber products is 10% or even lower. MSMEs have been, upset for a long while, over the rising raw material costs for industry.

“To pep up the competitiveness of the industry, the import duty on NR should be waived to the extent of domestic deficit,” said AIRIA, in a statement according to the reports, highlighting its concerns on “the inverted duty structure”. (KNN/RAS)