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RUBBER NEWS INDIA: Frame rubber policy at the earliest: Par panel asks Comm Min
(Last Updated: 04 Aug 2017)


Frame rubber policy at the earliest: Par panel asks Comm Min

 New Delhi, Aug 2 – A parliamentary panel has again recommended the commerce ministry to frame a national  policy at the “earliest” to promote the sector.

 is a strategic industrial raw material and  can not be put on the same footing as other plantation crops, the action taken report tabled in the Rajya Sabha said today.

The committee is of the “considered opinion that the national rubber policy may be framed at the earliest,” the action taken report on issues related to the commerce ministry said.

Earlier also, the committee had recommended for the rubber policy.

On this, the ministry has stated that no policy has been framed for any particular plantation crop, so it was decided not to make a separate policy for the commodity.

In the action taken report, the committee stated that it is not convinced with this justification.

It has also called for a comprehensive support framework for promoting MSME (micro, small and medium enterprises) exports.

“…the MSME exporters lack information on many fronts and thus need to be educated of the global markets and areas where they have trade opportunities,” it said.

It asked the department of commerce to come up with a customised schemes or programmes for education and awareness of MSME about the aspects of foreign trade.

The sector contributes about 40 per cent in the country’s total exports.

Further, the committee criticised that the department has invested lot of resources in DGFT’s (directorate general of foreign trade) EDI (electronic data interface) system but it still has to become completely paperless.

On export performance, the report said that for 2016-17,  2,640 crore was requested by the department of commerce for the interest subsidy scheme for exporters.

“However, in BE (budget estimate) 2017-18, only Rs 1,100 crore has been allocated under the scheme….(it) is not sufficient to meet the reimbursement claim for 2017-18.

“Additional requirement of funds, based on the requirement of funds by , would be sought from ministry of finance during RE (revised estimate/supplementary stage,” it added).

The department has also informed the committee that the government is examining various proposals received for expansion of the list of services under the Services Exports from  Scheme (SEIS) in consultation with the concerned ministries. RR BAL



Tyre sector pushes consumption of natural rubber

 Consumption of Natural  () in 2016-17 has increased to 1044,075 tonne from 994,415 tonne in 2015-16, mainly due to rise in the demand of auto  sector, informed Commerce and Industry Minister Nirmala Sitharaman in a written reply in Lok Sabha on Monday.

Production of NR in the country in 2016-17 was 691,000 tonne (provisional) against the consumption of 1044075 tonne of NR in tyre and non-tyre sectors.

There have been demands from Tyre Manufacturing Industry to rectify the duty structure as the Basic Customs Duty on Tyre is 10 percent as against that of Natural Rubber duty is 25 percent or Rs. 30/kg. whichever is lower. The matter was examined in the Department and in view of the prevailing situation of the rubber sector the proposal was not agreed to.

In order to increase production of Natural Rubber in the country the Government through the  is implementing the scheme “Sustainable and Inclusive Development of Natural Rubber Sector” wherein support is provided for plantation development and extension, strengthening research, technology upgradation and market development, Human resource development etc.


So far as artificial/ rubber is concerned, Chemical & Petrochemical Industry is delicensed and decontrolled and Government acts as facilitator in this sector, the minister said.

  • SME Times News Bureau


Natural rubber prices rise 12% in July in Indian market

 Supply crunch and indifference of growers towards tapping drove natural  prices 12 per cent higher this month in the Indian market grossly outpacing a marginal pickup in the global rates.

The  touched Rs 140 per kg on Wendesday, 12 per cent up from the beginning of the month. The international price is around Rs 27 per kg lower.

“Low prices discouraged the growers. Moreover, there was an uncertainty over the Keralagovernment’s price incentive scheme this year. Many small growers didn’t even install rain guards for tapping,” said George Valy, president of Indian Rubber Dealers Federation.

The state government on Tuesday gave the approval for the implementation of price incentive scheme in the current year, which ensures Rs 150 per kg for small growers having up to two hectares. The difference between Rs 150 and Rubber Board published figures will be credited directly to the account of the growers. The government has earmarked Rs 500 crore for the scheme in the budget. The scheme has been popular with around 4 lakh growers registering under the scheme in the last year.


“Now with the scheme in place we should see a rise in output. The total rubber output during the year could reach 8 lakh tonnes ” Valy said.

The consuming industry, meanwhile, has been keeping a low inventory in view of the GST implementation. ” In the non- industry rubber mainly goes as intermediate products. has been currently put in 18 per cent bracket with some products at 28 per cent. We have requested for a maximum slab of 18 per cent with most of the products placed in the 12 per cent slab,” said Kamal Chaudhary, president of All  Industries Association.

As the industry is mostly unorganised it would take at least six months for the players to get adjusted to the new system. ” For the tyre industry this time may be much smaller as it is organised,” Chaudhary said. The tyre industry is also expecting the sales to pick up in the second half of the year.

The global prices showed a tendency to rise in the last couple of days after the announcement by the consortium of , Indonesia and Malaysia that it is considering a cut in exports to prop up the prices.


Rubber Board eyes mn-tonne output next year on stronger input supply-chain

 The  has said that  production in the country continues to increase. Natural  () output in  2017 was up by as much as 23.1 per cent, at 48,000 tonnes, over the production in the same month a year ago (39,000 tonnes).

“If this trend continues, production of NR during the fiscal will reach the anticipated 800,000 tonnes this year, and one million tonnes next year,” said A Ajith Kumar, chairman, Rubber Board. Current annual demand for the commodity in the domestic market is about 1.1 million tonnes.

The Board focused on the key issue of streamlining the farm input supply chain and making sure the inputs reach farmers on time. The Board has started this year’s distribution of inputs at subsidised rates, through Rubber Producers’ Societies (RPSs). This year, rain-guarding material and spraying material are being supplied to the RPSs, through Board-owned companies.

The Board also focussed on bringing more untapped areas into production (last year, production area rose by eight per cent). Kumar said about 10,000 tappers were trained last year as part of an initiative to improve both quality and production. The move has helped to improve productivity by nearly 25 per cent, he claimed.

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