KOTTAYAM(Commodity Online): Rubber growers in India’s Karnataka has urged the government to hike import duty on natural rubber from 20% to 75%. They said due to the import duty, the price of natural rubber has plunged down. But imports are set to soar due to the conditions in other top rubber producing countries in Asia like Thailan and Vietnam.
Thailand, the world’s largest exporter of rubber, recently decided to release 200,000 tonnes of its stockpile. Vietnam’s finance ministry is considering slashing the rubber export tax down to zero from the current one per cent.
India imported 81,545 tonnes of natural rubber in 2008-09, which rose to 3.25 lakh tonnes in 2013-14. The country imported 1.61 lakh tonnes in the first three months of 2014-15. Around 42,500 tonnes of natural rubber was imported in August 2014 alone.
Going by the current trend, the country would import around 4-6 lakh tonnes during 2014-15. The country produces around 8.4 lakh tonnes of natural rubber against the demand of 10 lakh tonnes.
A study conducted by Automotive Tyre Manufacturers’ Association (ATMA) has confirmed 45% of India Rubber plantations are aged and low-yielding. The ageing trees pose the threat of low yield thereby signalling a cut in production.
– Commodity Online
