KOCHI, SEP 23:
The rubber industry, represented by the All-India Rubber Industries Association (AIRIA), has urged the Government for formulating a national policy on rubber on the lines of national policies for petroleum, textiles and information technology.
In his report issued along with the annual report of AIRIA, Niraj Thakkar, President, AIRIA, said that rubber is a sunrise industry with immense potential for growth.
A national policy on rubber is critical to optimise the potential of the sector.
India is the world’s 4{+t}{+h} largest producer and second largest consumer of natural rubber; and the third largest consumer of all the rubbers put together.
The consumption of synthetic rubber has been increasing at more than 20 per cent for the past five years.
However, with Vietnam, Indonesia, Sri Lanka and other rubber producing countries aggressively vying for a stake in the global rubber product manufacturing, challenges for the domestic rubber industry are likely to go up if competitiveness of rubber manufacturing is not enhanced, he said.
He pointed out that Vietnam had plans to increase the domestic consumption of rubber from the current 15 per cent to 40 per cent through a sharper focus on rubber products manufacturing.
TO TAP POTENTIAL
“We have already requested the Chairman, Rubber Board, for suggestions on the National Rubber Policy with a view to giving a direction to the industry’s efforts and for the Government to recognise the potential of the rubber industry”, Thakkar said.
According to AIRIA, the rubber industry particularly the small scale manufacturers are suffering from various issues such as high input costs, inverted duty structure, cheap imports and ad hoc signing of free trade agreements (FTAs) whereby, import of finished rubber products is encouraged.
AIRIA has already represented to the Commerce Secretary and the Secretary Ministry of MSME urging them for a slew of measures to help the industry to overcome the challenging phase.
These measures include doing away with inverted duty structure on natural rubber and rubber latex, reduction in import duty on latex to 20 per cent or Rs 12 a kg in line with the NR duty, withdrawal of cess Rs 2 on rubber or making it cenvatable, withdrawal of anti dumping duty on import of raw materials and to include Indian rubber products in the barter deals with any other country as and when considered.
Source: The Hindu
