The Hindu Business Line : Kerala Govt urged to stop decline in rubber prices

THE Cochin Rubber Merchants Association has sought the intervention of the Kerala Government to arrest any further fall of natural rubber prices by giving a subsidy for rubber exports.

"As an immediate relief, the State Government may announce a subsidy of Rs 2 per kg on 20,000 tonnes of rubber to be exported within this financial year," said Mr N. Radhakrishnan, President of the Association, in a statement here.

He said rubber production would reach record highs in the next four months and surpass three lakh tonnes.

This will lead to surplus stocks building up, thereby further affecting the prices.

From a high of Rs 67.50 per kg in mid July, rubber prices have fallen to around Rs 49.50 a kg on Monday.

Mr Radhakrishnan said a scheme might be drawn up which lets industries procure rubber from the domestic market without payment of purchase tax under the advance license scheme upon surrender of such license to bodies such RubberMark.

This measure will help prevent increase in rubber stocks in the domestic market.

"More local rubber will be consumed in the place of imported rubber and this will help to reduce the cumulative stock level in the country," he said.

The association has also urged the State Government to prevail upon the Central to reinstate the export incentive, which was recently halved.