KOTTAYAM: Having got a fresh lease of life following the rise in the price of Natural Rubber (NR) over the last two months, the rubber growing sector in the country is urging the government to desist from any move to reduce the import duty of NR which is currently at 25pc. They have stated that huge surge in imports had been a major factor for the crisis faced by the growers.
According to the planters, the demand for reduction in import duty of NR has nothing to do with production deficit but is due to increase in the international prices of NR. Domestic price is currently ruling at Rs 160 per kg while, the international price is Rs 175.18 per kg and the call for reduction in import duty of NR, is nothing but a ploy to further depress the domestic prices, the planters have alleged.
Meanwhile, the Rubber Board in a press note had cited that the increasing trend in rubber production in the country continues and the production of NR during the month of January 2017 shows an increase of 26.93 per cent as compared to the production during the same period last year. Production during January 2017 is 66,000 tonnes whereas it was 52,000 tonnes in January 2016. Increase in production during the period April 2016 - January 2017 as compared to the same period last year is 14.84 per cent. Total production in the current fiscal up to January 2017 is 5,65,000 tonnes whereas it was 4,92,000 tonnes during the same period last year. If this trend continues, production of NR during the fiscal is expected to reach the anticipated 6.54 lakh tonne. The press note had also cited that the export of NR from the country has also increased owing to prevailing relatively higher international market price. Export of NR up to February 20, 2017 is 12,000 tonnes.
The United Planters' Association of Southern India (UPASI) urged the government not to reduce the import duty of NR which is currently at 25pc. Any such move will be detrimental to the interest of 1.2 million growers dependent on this agro industry and tantamount to fixing the final nail in the coffin, said Vinod Sivappa, President, UPASI.
NR was the only plantation commodity wherein the bound rate (maximum rate of tariff allowed by World Trade Organization to any member state for imports from another member state) was fixed at a very low level of 25pc. The base duty of dry forms of NR in the base year (1986) under WTO framework was 85 per cent (above the threshold level of 40 per cent) and hence should have been bound at 40 per cent according to the norms. The fixation of lower bound rates for the dominant dry forms of NR thus was not only regressive but also an explicit violation of the standard norms fixed by the Government. That be as it may, there is no reason whatsoever to reduce the import duty especially given the surge in imports of natural rubber into India during last few years, with each year reporting new highs. For instance, the import of natural rubber in 2008-09 was 77,762 tonnes which had increased many fold and reached 4,58,374 tonnes in 2015-16. During the current year up to December 2016 the import was again higher by 1.34 thousand tonnes.
Source: timesofindia.indiatimes.com