KOCHI,INDIA(Commodity Online): The unrestricted imports of natural Rubber in India has impacted the prices and farmers’ dire situation continues abated. Making things worse tapping has come to a standstill in many small and medium plantations.
On Tuesday, The United Planters’ Association of Southern India (Upasi) urged the India Government to curtail unrestricted imports of natural rubber immediately.
“Many small and medium growers have stopped tapping, bringing down September production in September to 60,000 tonnes from 80,000 tonnes in the same period a year ago. Non-remunerative prices and increasing costs of wages and fertilisers will make more growers stay away from tapping,” Upasi said in a statement.
“Price of the largely-traded RSS IV grade has crashed to Rs.120 a kg from Rs 165 this time last year and Rs 243 in April 2011. This is due to import of 3.25 lakh tonnes in 2013-14 against 2.17 lakh tonnes the previous year. Where is the justification to import 3.25 lakh tonnes when production is 8.44 lakh tonnes and consumption is just 9.81 lakh tonnes?” the association asked.
“Besides, imports during peak production season suppress prices. So, there should be a mechanism to monitor imports and Government should cap the quantity before it damages the domestic rubber industry. Till September, 2.26 lakh tonnes had been imported compared to 1.81 lakh tonne last year,” the association added.
Kerala, the south Indian state, had recently demanded duty hike on sheet rubber and rubber products from the current 8 per cent to 40 per cent to curb the import of huge quantities of non-tyre finished products from China which damages the prospects of domestic small-scale rubber industries.
Thailand, the largest producer of rubber in the world, has announced subsidies for rubber farmers and proposed to buy rubber from the market. This has led to a rise in global prices that had fallen to Rs 97 per kg. The Bangkok price touched Rs 105.42 per kg on Monday. But there has been no increase in demand, particularly from China, the largest consumer.
– Commodity Online
