With natural rubber prices dropping to ₹140 levels in last few sessions, the Indian Rubber Growers Association has demanded suspension of rubber imports through all channels for one year. It also asked the authorities concerned to redefine the policy on import related exports.
Siby J Monippally, President of the Association, alleged that importers, who brought the commodity through duty free channel, delay their export commitments unreasonably to an extent of three years, affecting the balance in the industry.
It pointed out in the representation that 2.70 lakh tonnes of rubber have been imported till now. About 65 per cent of the imports were through duty-free channel (Duty Exemption Entitlement Certificate). The imports are against a projected deficit 70,000 tonnes.
If the trend continues, three lakh tonnes of rubber could be imported by the end of the current fiscal. This artificially created a glut in the market.