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RUBBER NEWS INDIA: Punjab government – Govind Rubber signs Rs 5,000 crore pact
(Last Updated: 04 Dec 2017)



Punjab government – Govind Rubber signs Rs 5,000 crore pact

 CHANDIGARH: In a major boost to its industrial development and investment plans, the Punjab government has signed a  5,000 crore pact with -based Govind Rubber Limited.

Punjab government - Govind Rubber signs Rs 5,000 crore pact

The new plant will cater to the demand for  and tubes across all the sectors-from bicycles to automobiles, as well as heavy earth moving machinery.

The MoU was signed by the company\’s chairman Vinod Poddar and Punjab Bureau of Investment Promotion CEO and Secretary Industries and Commerce, Punjab, R K Verma here today.


The MoU envisages the establishment of new tyres and tubes manufacturing plant, to be set up in two phases over 250 acres.

The first phase will be completed by December 2018 at Rs 3,000 crore, an official spokesperson said, adding Poddar Group had vast experience in the  and was already running a unit in Ludhiana for the past two decades.

The project would yield employment opportunities for more than 3,500 people, while giving a fillip to the state\’s industrial development, said the spokesperson, describing  as an outcome of the Chief Minister\’s Mumbai visits to woo captains of industry and the government\’s new industrial policy, with its provisions aimed at creating an industry-friendly environment in the state.

The new plant will cater to the demand for tyres and tubes across all the sectors-from bicycles to automobiles, as well as heavy earth moving machinery.

The plant will be set up with state-of-art technology and shall have 300 robots to manage the manufacturing process, which shall be highly environment friendly with no air or water pollution, the company\’s chairman stated.

He further disclosed that this will be the first plant in  deploying such a large number of robotic processes in manufacturing.

Verma assured Poddar that the state government shall facilitate speedy implementation of the project and all assistance would be provided in securing approvals and financial incentives in a time-bound manner.

Cut rubber production cost:


Minister says due to trade pacts imposing dumping duty is unrealistic

Union Minister of State for Tourism and IT K.J. Alphons has said the key to overcome the present crisis in the rubber plantation sector lay in finding strategies to cut down on the cost of production and increase natural rubber consumption.

Speaking to the stakeholders at a brainstorming session organised by the Rubber Board at the Rubber Research Institute of India at Puthuppally, near here, on Saturday, Mr. Alphons pointed out that most of the remedial demands being made were unrealistic and impractical. The demands being made, like imposing dumping duty or putting an end to imports, were unrealistic under the various trade agreements entered into. One of the ways to reduce cost of production was exploring the possibility of extending the Mahatma Gandhi National Rural Employment Guarantee Scheme to (MGNREGS) rubber plantation related works. He asked the Rubber Board to send a report on the issue to him so that he could take it up with the authorities concerned.

‘Safeguard duty’

Meanwhile, former Rubber Board chairman P.C. Cyriac, said the Central government could impose a ‘safeguard duty’ on rubber imports as per the provisions of international trade agreements. He alleged that a demand for imposition of the safeguard duty had been hanging fire following technical reasons.

Mr. Alphons pointed out that imposition of the safeguard duty would result in a steep increase in the import of tyre.

According to him, he too came from a rubber growing area of the State and was convinced that earnings from the rubber plantations were crucial for the economic security of the State.

Road rubberisation

As part of increasing the consumption of natural rubber, the Surface Transport Ministry would be approached seeking use of natural rubber in the road rubberisation initiative while developing new highway networks.

Another suggestion came up during the interaction was that rubberwood and rubberwood products and the Rubber Producer Societies (RPS) be exempted from GST registration.

Another major demand, that the Central government should come up with a clear national rubber policy, would be taken up with the Ministry of Commerce, he said.

Demands like ploughing back a share of the rubber import duty to the rubber plantation sector, promotion for farm tourism, increase in subsidy for rubber replanting, and establishment of welfare board for tappers, were also raised during the session.

Rubber Board executive director A. Ajith Kumar, secretary N. Rajagopal, and board members were present during the interaction in which selected farmers, representatives of the RPS and other organisations functioning in the Natural Rubber sector participated.


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 produ