The Hindu Business Line : Govt may extend subsidy for addl rubber exports

THE Union Government is likely to extend the subsidy given to rubber exports to the additional quantity of the commodity exported from the country in the previous fiscal.

As against the target of 50,000 tonnes, rubber exports from India touched 76,000 tonnes during 2003-04. Subsidy was announced only for exports up to 50,000 tonnes in the year.

Industry sources say the Government has already provided subsidy for 60,000 tonnes exported. For the balance of 16,000 tonnes, the decision will be taken soon. The Commerce Ministry will hold a meeting to take a decision in this regard, they told Business Line.

"We hope that the Government would provide the subsidy for the entire quantity exported. Otherwise, we may suffer losses," an exporter said.

In 2003-04, a subsidy of Rs 3.5 kg was given for the RSS 4 (ribbed smoked sheet) grade rubber and Rs 5 per kg for block rubber.

The subsidy was announced to give a fillip to rubber exports from India, which, despite being the third largest producer of natural rubber, is yet to gain any recognition in the international commodity markets.

When the subsidy was announced, the goal was to achieve rubber exports of one lakh tonnes during the 10th Five Year Plan. However, this target was well surpassed in just two years. In fiscal 2002-03, exports stood at 55,000 tonnes.