Govt asks rubber industry to work out details of National Rubber Policy
Updated: Nov 13, 2013 03:35:40pm
New Delhi, Nov 13 (KNN) Amidst plans to formulate the National Rubber Policy along the same lines as that of the textile policy, the government has asked the industry to work out the details.
Two months earlier, the All India Rubber Industries Association (AIRIA) had highlighted the need for a national policy on rubber for the development of the sector.
“With the new policy, we want the entire section of the rubber industry to benefit, right from the planters, to the manufacturers to the exporters,” President of AIRIA, Niraj Thakkar told KNN.
“We will involve participation of all our stakeholders, like growers, manufacturers, producers, traders to formulate a draft report,” Thakkar added.
“AIRIA has been demanding the increase of import duties on finished rubber products to help the SMEs who face the challenge of fast growing cheaper imports,” he added.
Due to cheap imports of finished products, people are importing rather than manufacturing those products which is leading to loss of hundreds of jobs and even closing of SMEs.
With natural rubber prices falling to Rs 159 a kg, from around Rs 240 this time last year, farmers’ organisations and industry especially in Kerala have been demanding a ban on import of rubber.
The current domestic price is below Rs 160 a kg (for RSS-4), and because global prices are lower, the tyre industry also prefers to import.
In October, natural rubber imports rose 81 per cent to 33,486 tonnes, against 18,466 tonnes a year earlier. At 45,581 tonnes, imports had risen 208 per cent in September. For the April-October period, imports stood at 214,448 tonnes, against 131,107 tonnes in the year-ago period, a rise of 64 per cent. In 2012-13, imports of natural rubber stood at 217,364 tonnes; for this financial year, imports are likely to exceed 300,000 tonnes.
The increasing imports have led to a steep fall in prices in the local market, affecting million-odd growers of the natural rubber across Kerala. Moreover, 5 per cent Value Added Tax on natural rubber in Kerala is a burden for the buyers,” AIRIA President added.
“There should be safeguard duty on finished goods imports of rubber. There should also be removal of CESS on natural rubber for the domestic manufacturers as Rs 2/kg CESS is too high for the manufacturers,” Thakkar added.
“The government should also focus on exploring new prospects in the sector rather than focusing only on the traditional product. There is a dire need to upgrade the sector and change the traditional machineries with new technologically advanced machines,” he added.
For that, 15 per cent borrowing rate of the machineries is too high, Thakkar said.
Last week, Development Commissioner for rubber, J S Deepak (Commerce Ministry), told the rubber industry delegation, headed by Thakkar, to make up a detailed draft that will address the interests of all stakeholders, such as growers, machinery manufacturers, synthetic rubber producers, manufacturers, importers, exporters and educational institutes, according to AIRIA. (KNN/SD)
Two months earlier, the All India Rubber Industries Association (AIRIA) had highlighted the need for a national policy on rubber for the development of the sector.
“With the new policy, we want the entire section of the rubber industry to benefit, right from the planters, to the manufacturers to the exporters,” President of AIRIA, Niraj Thakkar told KNN.
“We will involve participation of all our stakeholders, like growers, manufacturers, producers, traders to formulate a draft report,” Thakkar added.
“AIRIA has been demanding the increase of import duties on finished rubber products to help the SMEs who face the challenge of fast growing cheaper imports,” he added.
Due to cheap imports of finished products, people are importing rather than manufacturing those products which is leading to loss of hundreds of jobs and even closing of SMEs.
With natural rubber prices falling to Rs 159 a kg, from around Rs 240 this time last year, farmers’ organisations and industry especially in Kerala have been demanding a ban on import of rubber.
The current domestic price is below Rs 160 a kg (for RSS-4), and because global prices are lower, the tyre industry also prefers to import.
In October, natural rubber imports rose 81 per cent to 33,486 tonnes, against 18,466 tonnes a year earlier. At 45,581 tonnes, imports had risen 208 per cent in September. For the April-October period, imports stood at 214,448 tonnes, against 131,107 tonnes in the year-ago period, a rise of 64 per cent. In 2012-13, imports of natural rubber stood at 217,364 tonnes; for this financial year, imports are likely to exceed 300,000 tonnes.
The increasing imports have led to a steep fall in prices in the local market, affecting million-odd growers of the natural rubber across Kerala. Moreover, 5 per cent Value Added Tax on natural rubber in Kerala is a burden for the buyers,” AIRIA President added.
“There should be safeguard duty on finished goods imports of rubber. There should also be removal of CESS on natural rubber for the domestic manufacturers as Rs 2/kg CESS is too high for the manufacturers,” Thakkar added.
“The government should also focus on exploring new prospects in the sector rather than focusing only on the traditional product. There is a dire need to upgrade the sector and change the traditional machineries with new technologically advanced machines,” he added.
For that, 15 per cent borrowing rate of the machineries is too high, Thakkar said.
Last week, Development Commissioner for rubber, J S Deepak (Commerce Ministry), told the rubber industry delegation, headed by Thakkar, to make up a detailed draft that will address the interests of all stakeholders, such as growers, machinery manufacturers, synthetic rubber producers, manufacturers, importers, exporters and educational institutes, according to AIRIA. (KNN/SD)
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