The United Planters’ Association of Southern India is hoping that the Government would intervene and enhance the import duty on natural rubber to 30 per cent from the existing 20 per cent in the forthcoming budget to save the domestic rubber industry.
Upasi President Vijayan Rajes has, in a statement issued here on Thursday, said that if such immediate measures are not taken, the livelihood of the 1.2 million rubber growers would be at stake.
Refuting claims of the consuming segment that the import of natural rubber has not affected the prospects of the local farmers, he said, “India until recently was leading in productivity of natural rubber until producers stopped tapping due to non-remunerative prices on account of large scale imports, pushing the country to the fifth position. Prices dipped sharply from ₹241 in April 2011 to the current level of ₹126.”
Imports have surged 22 per cent to 3.51 lakh tonnes between April and December 2014 compared to 2.88 lakh tonnes the corresponding period of the earlier fiscal, whereas the consumption rose by just 4.4 per cent to 7.64 lakh tonnes from 7.31 lakh tonnes.
Taking exception to statements that suggested that there was no proportionate increase in imports compared to the drop in production, Rajes said, “these are statistical artifacts. The imports during the current fiscal have been in excess of domestic requirement by over 1.15 tonnes. The government should therefore intervene to safeguard the interest of the large number of small and marginal rubber growers.”
– The Hindu
