The Hindu Business Line : Rubber exports failed to pick up last year

IT is a paradox that export of sheet rubber from the country failed to pick up last year despite international prices reigning higher by about Rs 15 per kg, according to the Cochin Rubber Merchants Association.

Addressing the AGM, the President, Mr N. Radhakrishnan, said while imports of natural rubber has been steadily increasing, exports have been declining.

While the country exported 75,906 tonnes in 2003-04, it imported just 43,154 tonnes. In 2004-05, exports fell to 45,855 tonnes, while imports rose to 66,198 tonnes. Continuing the trend, exports fell to just 10,368 tonnes till September of the current year against imports of 35,823 tonnes.

Mr Radhakrishnan identified withdrawal of export subsidy as the prime culprit for the fall in exports.Export subsidy was cut to 50 per cent during 2004-05 and it was fully withdrawn during the last quarter.

This lack of incentive to export has resulted in the Indian grower getting very low prices compared to the international markets.

As a result of lower exports, rubber stock also went up from 77,293 tonnes to 1,06,000 tonnes in 2004-05, the association said.

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