Trimming tariff to hit rubber production, say growers

Thiruvananthapuram, June 14: Rubber growers have voiced apprehensions at the consuming industry’s move to alter the exim policy on rubber, including pushing down the import duty under TRQ (tariff rate quota). Any move to trim the import duty further will depress the price and thus the rubber production, according to Indian Rubber Growers Association (IRGA).

Price realisation of rubber has been worse than before, though rubber fetches R130 per kg currently. The cost of production is as high as R160 per kg. “It is true that there is shortage of natural rubber in the country. But the Indian rubber growers are capable of producing the required quantity for the consuming sector, if prices are fair and reasonable," IRGA general secretary Siby Monippally said in a letter to the Centre.

The rubber growers have called for a conducive atmosphere that is a win-win for all should be evolved through consensus among stakeholders for the better future of India’s rubber industry. If imports are made more liberal through a change in the policy, it would put an end to rubber cultivation in India, which was developed over a period of 60 years.

The non-tariff measures like port restriction and six months’ stipulation for exports are not restricted in nature, since 90% of the imports are through Mumbai and Chennai ports. Shorter export obligation will hasten exports and restrict flooding of imported natural rubber in the country, says IRGA in the letter.

‘Rubber fetches R130 per kg currently. The cost of production is as high as R160 per kg’