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Sajeev Kumar V.

Kochi , Dec. 25

THE latex processing sector, a valuable sub-sector of the natural rubber industry in Kerala, can make phenomenal progress if concerted efforts are made to modernise the industry, according to the Association of Latex Producers of India.

The industry has shown signs of resurgence from the year 2002-03 even though it had undergone a crisis from 1997-98 till 2001-02 due to prices falling below remunerative levels.

The need of the hour is a clear strategy including modernisation of the existing units so as to produce speciality grades of latex concentrates for the niche market, Mr Satish Abraham, President of the Association, said.

Presenting a paper during a recent workshop, he said that regular export of latex concentrate was necessary to generate a steady demand.

Besides, it is also necessary to manufacture labour-intensive latex rubber products on a large-scale basis for the export market following the example of Malaysia.

For this, the State Government should take steps for promoting such industries. The State Government and the Rubber Board should evolve a scheme to provide a package of assistance to selected latex concentrate producers.

The package should provide for exemption from taxes and levies with respect to investments made from the profits of the units to integrate production with manufacture, he added.

The Association has also urged the Government to take steps to obtain deemed export status to the latex concentrate supplies, particularly to the units situated EPZs.

The Government should also take steps to bring down the purchase tax of rubber in line with the comparative levies in Tamil Nadu and Karnataka to ensure better availability of raw materials.

The latex processing sector in Kerala produces about 60,000 tonnes of dry rubber content equivalent of preserved latex concentrates per annum, worth about Rs 400 crore.

There are over 100 units with installed capacity of one lakh tonnes dry rubber equivalent of latex concentrates. However, the industry produces only about 60,000 tonnes per annum.

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