The Hindu Business Line : 'Cut in rubber export subsidy may hit domestic prices'

REDUCTION of export subsidy by 50 per cent and the maximum quantity to be exported with subsidy limited to 34,000 tonnes would affect the domestic rubber prices, Mr George Valey, President of the Indian Rubber Dealers Federation, said here. Only through large-scale export, about 10 lakh rubbers growers could get a price equivalent to international market.

During the last fiscal, a total of 75,905 tonnes of rubber could be exported. Of this, subsidy was disbursed to 60,000 tonnes. Payment of subsidy by the remaining quantity of 15,000 tonnes is also under the active consideration of the Government, Mr George Valey informed.

The reduced subsidy has been limited to 34,000 tonnes in 2004-2005. The quantity so far exported is 24,733 tonnes. The drastic reduction made both in rate and quantity would affect the total export, which might have an adverse impact on the rubber growing community.

Manufacturers have already imported 44,230 tonnes in 6 months time. This exceeds the total import last year.

Mr George Valey, therefore, requested that the State Government and the Rubber Board should immediately interfere and exert pressure on the Centre Govt of India to sanction export subsidy for a minimum quantity of 75,000 tonnes during the current year also.