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Growers urge govt to suspend import of NR

Source : BUSINESS_STANDARD
Last Updated: Wed, Dec 19, 2012 20:50 hrs

About 1.1 million growers and 5 million workers are directly involved in this agri-business. India produces 930,000 tonnes of natural rubber of which 93 per cent is produced by small and medium growers

The Indian Rubber Growers Association has urged the government to temporarily suspend the import of natural rubber under the advance licence scheme in view of the steep fall in prices. The price of benchmark grade RSS-4 on Wednesday dropped to Rs 162 kg from Rs 185 a few weeks ago.

Association president Siby J Monippally said the government should intervene and enhance import duty on all goods manufactured out of natural rubber, including tyre, to 8 per cent. He pointed out that in 1999, when prices dropped heavily, the government had temporarily suspended import under this scheme.

Local prices have now dropped even below the international prices, thanks to the rise in import in the current financial year. Global markets today quoted Rs 173 a kg. Local prices had fallen from Rs 242 kg to Rs 162 over a period of one year.

About 1.1 million growers and 5 million workers are directly involved in this agri-business. India produces 930,000 tonnes of natural rubber of which 93 per cent is produced by small and medium growers. Production and consumption in India is almost balanced at 930,000 tonnes and around 1 million tonnes respectively.

During 2010-11, 191,000 tonnes were imported and this increased to 214,000 tonnes in 2011-12.

In the current financial year during April- November 153,855 tonnes, which is higher by 32.5 per cent as against the same period of last FY. By the year end, this may go up to 250,000 tonnes. More than 70 per cent of the import is under the advance licence scheme and without import duty.




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