The Hindu Business Line : Core group to focus on block rubber development

PROMOTING processing and usage of technically specified rubber (TSR) and tackling the menace of rubber smuggling from Kerala were the focal points of a core group meeting called by the Rubber Board.

The group, comprising representatives of rubber consuming industries, producers and processors, was set up earlier at the behest of the Rubber Board to look into various issues pertaining to the rubber sector.

In its first meet held recently at Kottayam, the group focussed its attention on development of TSR or block rubber in the country in view of growing rubber imports, industry sources said.

Though India is the fourth largest natural rubber producer in the world, the share of TSR in its total rubber production is only 13 per cent, while globally TSR constitutes 55 per cent of the natural rubber production.

One of the main reasons why the TSR production has not picked up in the country is its lack of users within. Tyre manufacturers, who consume over 50 per cent of the rubber produced in the country, still prefer the sheet rubber, but they import TSR to meet requirements for such rubber.

In their part, tyre makers blame what they term as inconsistent quality and technical specifications of Indian block rubber.

The meeting decided to form a committee that will study these issues and suggest ways to improve the use of block rubber, the sources said.

Another issue that was discussed in detail at the meeting was the smuggling of rubber from Kerala to neighbouring States where sales tax rates are lower compared the same here.

The group will apprise the Kerala Government of the present situation and would strive to get a sales tax reduction so that the attraction to smuggle rubber across to other States would diminish.

The meeting did not deliberate much on the prevailing rubber prices in the domestic market since the members felt that there was no point discussing an issue that is driven by market forces, sources said.