The Hindu Business Line : Continue subsidy for exports, says RubberMark

ANY move by the Government to remove the subsidy on rubber exports will push the prices down, affecting lakhs of farmers, and adversely impact India's trade in international markets, according to an apex body of farmers' co-operatives.

"If the incentive given to rubber exports is lifted, price of rubber in the domestic market will drop by Rs 5 per kg. Lakhs of growers will suffer," said Prof K.K. Abraham, President of the Kerala State Co-operative Rubber Marketing Federation Ltd (RubberMark).

He alleged that there was constant pressure from tyre manufactures' lobby to take the subsidy away in order to push prices down in the domestic market.

The Government gives a subsidy of Rs 3.5 per kg for RSS grade and Rs 5 per kg for ISNR grades to boost exports.

The subsidy was announced for 50,000 tonnes of exports this fiscal.

However, 67,000 tonnes have been shipped till February and it will be decided soon whether or not to extend the subsidy for the additional 17,000 tonnes exported.

"Import duty on rubber will keep coming down the future. In view of this, the current incentives should be continued for the next five years," Prof Abraham told newspersons.

The incentive is used to meet additional expenses incurred by the exporters for improving the quality and packing of the rubber to conform to international standards.

According to him, India, despite being the world's third largest producer of natural rubber, has not got the recognition it deserves in the international market.

Prices of Indian rubber still rule $50 less per tonne compared to rubber from other countries.

"Our exports of 70,000 tonnes is peanuts in the international market. We have to reach a size of 1.5-2 lakh tonnes of exports annually to capture the attention of global players."

Prof Abraham alleged that the Automotive Tyre Manufacturers Association, in a representation given to the Directorate-General of Foreign Trade, had misquoted the Kerala Chief Minister, Mr A.K. Antony, as saying that there was no need for subsidy for rubber exports.

"We contacted the Chief Minister and he denied having made that comment ever."

More Stories on : Rubber | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Northern dists bear the drought brunt in Kerala

Continue subsidy for exports, says RubberMark

Lack of buyers floors rubber

Simbhaoli Sugar to enter speciality segment

Upasi opposes orthodox tea sales thru auctions

Gold may break out of range

Watershed development proves a hit in AP

NDDB to spend Rs 200 cr to increase productivity

Coffee prices on the rise