The Hindu Business Line : Remove cap on exports, urge rubber merchants

THE Cochin Rubber Merchants Association (CRMA) has urged the Union Government to allow unrestricted exports of natural rubber with full cash incentives to keep the nation's presence felt in the international market.

The CRMA President, Mr N. Radhakrishnan, said in a press release that the Government had imposed an indirect ban on rubber exports. He said the Rubber Board had not only slashed cash incentive by 50 per cent but also reduced the eligibility to less than 45 per cent of the quantity that was exported last year. Against 75,906 tonnes of rubber exported during 2003-04, the Board has permitted export of 34,000 tonnes only with incentive in 2004-05.

Prior to the issue of notification last week, the country had already exported 30,200 tonnes leaving only 3,800 tonnes of rubber to be exported in the next four months. During the same period last year 38,000 tonnes of rubber were exported giving a fillip to rubber prices.

The Rubber Board, he alleged, had also directed exporters that only crumb rubber would be eligible for subsidy up to March 31, 2005.

As a result, the worst affected would be the small growers as they would not be able to supply sheet rubber to exporters. However, "unrestricted imports are being allowed and there is spurt in imports irrespective of high prices in international market," he said.

Though 43,154 tonnes of rubber was imported last year, the quantity has exceeded 44,000 tonnes in the past seven months.

The incentives allowed to rubber exporters were not a subsidy, he said. It was only to compensate the exporter towards the cost of packaging, transportation and port charges incurred.

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