Commodity online
KOLKATA: Worried over the rise in prices and a looming shortage, All India Rubber Industries Association (AIRIA) has demanded duty-free import of 1 lakh tonnes of rubber through a designated agency for distribution to the domestic sector.

This is because 49,800 tonnes of natural rubber, as imported under Duty Exemption Entitlement Certificate licence, are meant for export production with no relevance to domestic demand.

The association is concerned about the rising prices of the commodity. AIRIA said the rubber goods sector needed to be unshackled from many controls that were holding back the industry’s growth.

The rubber goods sector comprising some 6,000 units (large scale, medium and tiny sector) and commanding an annual turnover of nearly Rs 29,000 crore, employs close to four lakh persons.

Citing high input costs and NR availability as the two main constraints currently facing the Indian rubber industry, the association said the consumption of rubber may well outstrip production, especially after the natural rubber production loss in the last few months owing to chikunguniya and excess rains in Kerala, the main producer in the country.

The shortfall could amount to around 1 lakh tonnes, and may also lead to a further spurt in NR prices, the association said.

Pointing out that an inverted duty structure on rubber and latex has been allowed to continue throughout the year, the association said while duties on finished rubber products had been brought down to 10 per cent, duties on NR and latex had remained unaltered at 20 per cent and 70 per cent respectively.

However, the Rubber Board, in a recent statement said the natural rubber production ahs gone up in December and the production loss during the previous few months will be covered following increased interest among farmers to lift production.

Kerala was expected to produce less rubber this year following an outbreak of chikungunya among workers in the state during the rainy season.

However, a rise in prices has forced growers to produce more during the peak season of December and January.

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