New Delhi, Mar 12 (KNN) The Centre has reaffirmed its stance against requests of the rubber lobby group regarding reducing the import duty on rubber from the current 25 per cent to 15 per cent.

The Union Commerce and Industry Ministry’s stand is perceived as directed towards safeguarding the welfare of rubber-growing farmers.

India heavily relies on rubber imports from Southeast Asian countries like Vietnam, Malaysia, and Indonesia. The All India Rubber Industries Association (AIRIA) has been advocating for lower import duties to ease industry pressures.

With 1.3 million rubber growers nationwide, Kerala leads in production, contributing nearly 600,000 tonnes in 2022-23.

AIRIA, representing small and medium businesses, highlights a significant rubber shortage due to insufficient domestic production, leaving the industry reliant on imports.

AIRIA President Shashi Singh underscores the impact of high import duties and an inverted duty structure on small-scale industries. Singh emphasises the urgent need for duty cuts and restructuring to support domestic players.

“The small and medium-scale domestic industry is affected by high duty and an inverted duty structure. Currently, we have to pay a duty of 25 per cent or Rs 30/kg, whichever is higher,” Singh said.

“We are requesting a duty cut to protect the small industries in India, and the inverted duty structure needs to be urgently addressed," the AIRIA president said.

However, a senior government official underscores the government's priority: protecting farmers' interests. To this end, the government has boosted financial aid for the rubber sector by 23 per cent over two years, aiming to enhance natural rubber production and reduce import dependence.

The increased funding will support various initiatives, including rubber plantation, productivity enhancement, and research. It targets expanding rubber production, especially in non-traditional regions like the Northeast.

Under the scheme, rubber growers will receive planting materials worth Rs 50,000 per hectare, supplementing ongoing efforts by organisations like the Rubber Board and the Indian Natural Rubber Organisation for Assisted Development (INROAD) project.

(KNN Bureau)