The Hindu Business Line : Upasi opposes change in rubber import tariff

Kochi April 16 The United Planters Association of South India (Upasi) has urged the Centre to continue with the existing import tariff of 20 per cent on natural rubber. It has also said there is no need to provide any reduction in Customs duty under the proposed Free Trade Agreement (FTA) with Thailand.

Reacting on the reported signing of an FTA with the South-East Asian nations in June 2007 and a move to de-list natural rubber from the sensitive list and a proposed reduction in tariff to five per cent from 20 per cent, Mr J.K. Thomas, President, Upasi, said "this will have large implication on the natural rubber sector, especially the small growers depending on it".

He said 8,02,625 tonnes of rubber were cultivated in India by over a million small and marginal producers, mainly concentrated in Kerala and they solely depend on rubber cultivation for their livelihood.

"Even a small fluctuation in its price greatly affected their livelihood. We strongly believe that there should be parity between the domestic and international price especially in today's open economy," he said.

The domestic prices today are much below the international price and this trend has been noticed for the past few years. In fact, the divergence in domestic-international price has widened.

"We had seen in the past that even when domestic prices were lower than the international prices, the rubber consuming industry, mainly the tyre manufacturers have imported large quantities of natural rubber paying the full duty that too through the port of Kolkata as there was a port restriction for imports, just to depress the domestic market."

The domestic production for 2006-07, he said, was estimated at 8,53,000 tonnes whereas the consumption is only 8,20,000 tonnes which clearly indicates that domestically there is enough surplus available. In such a situation, there is no need to allow imports.

The Upasi President has, therefore, requested the Union Government to reconstitute the Rubber Board so that such issues could be deliberated and recommendations made to the Union Government

Meanwhile, the Department of Commerce, Union Ministry of Commerce and Industry, has clarified that the Government has not made "any commitment, whatsoever, for reduction of tariff on natural rubber".

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