The Hindu Business Line : `Reject tyre makers demand to ban rubber exports'

The Indian Rubber Dealers Federation has appealed the Union Government to reject the demand of the industry for a ban on exports and cut in customs duty of rubber.

If the demand of the industry is met, unwanted rubber will find its way into the country when the international prices turn favourable for imports, the Federation President, Mr George Vally and its Vice-President, Mr N. Radhakrishnan, said in a release issued here. Instead the industry should seek hike in customs duty on imported rubber products and concessions in excise duty, they added.

According to the Federation, the tyre industry's demand to reduce import duty on rubber from 20 per cent to 10 per cent is intended to confuse people at a time when the rubber growers started getting reasonable prices, which will enable them to pay off their accumulated debts. Growers received low prices during 1999-2002 when the country had over two lakh tonnes of rubber in stock.

Various measures announced by the Centre in 2001-02 to bring succour to the growers failed to materialise as the industry kept on importing more rubber. Even statutory minimum prices failed to bring any relief, the Federation said.

The Federation leaders pointed out that excessive quantity of rubber in the country was gradually removed due to the export incentives sanctioned by the Government and also due to the initial efforts of Rubbermark, Rubco, Infam and others who exported suffering losses in order to book orders from the international market. Though the country exported 2.47 lakh tonnes during 2002-06, the industry imported 1.83 lakh tonnes .

Thanks to the upswing in the international prices, Indian prices also went up in the past one year but tyre industry procured rubber from growers at Rs 10-15 lower than international market rate. Even now the tyre industry is not importing eligible quantity of duty free rubber against advance license scheme because of high international prices and due to substantial availability of rubber in Kerala, the Federation said.

During this month, the production is at all-time high as monsoon is delayed.