The Hindu Business Line : Rubber traders threaten to halt exports

SPREADING TO NORTH-EAST:A worker handling rubber sheets at South Mirja Rubber Processing Unit in South Tripura. Rubber has been identified as a major income generating farm business activity in the State. Tripura plans to bring one lakh hectares under rubber plantation. Currently, about 29,000 hectares are under rubber and it is the second largest, after Kerala. The growers have also been encouraged by rising prices during the last two years. — A. Roy Chowdhury

Kochi , Nov. 25

RUBBER exporters under the aegis of the Cochin Rubber Merchants Association on Friday said they would stop exports unless the State Government refunded their value added tax (VAT) claims.

According to Mr N. Radhakrishnan, President of the association, around Rs 10 crore is blocked due to the delay in refunding VAT to natural rubber exporters.

"Exporters cannot afford to ship rubber any more unless the Government issues refund orders of all the claims of the exporters immediately," he said in a statement here today.

Since Kerala introduced VAT from April 1 this year, nearly 40,000 tonnes of rubber were exported. However, no refund of the claims were made till date, he said.

"We are furnishing all required documents, but nobody has got the refund yet," Mr Radhakrishnan said.

The exporters were now reluctant to quote against export enquiries due to the Government's inaction, he said.

As per the rules of VAT, exporters are required to pay VAT at four per cent while buying the rubber, which is to be refunded later when exports take place.

The Government had promised to constitute an export cell in Kochi to facilitate the refunds, but it has not materialised.

"Unless the Government comes forward to refund the tax immediately as per VAT rules, rubber exporters will be forced to withdraw from the export market. Such a decision will have a cascading effect on prices in future," he said.

Firm trend continues

Our Correspondent reports from Kottayam: The physical rubber market maintained the firm trend in the absence of quantum sellers amidst reports on moderate rains over the plantation tracks. ISNR 20 and latex were quoted flat, while other grades gained on covering purchases. RSS 4 improved to Rs 65 from Rs 64.75 a kg at Kottayam, while it closed steady at Rs 65 a kg at Kochi.

NMCE rubber futures turned weak in near months quoting the December contract at Rs 65.47 (65.70) and January at Rs 65.50 (65.73) as the international markets were in a mixed mood with a weak undercurrent. The far months were slightly firm, trading the February contract at Rs 66.78 (66.46) and March at Rs 67.20 (67.15) per kg for RSS 4.

The total volumes were dull at 607 lots till mid-session, with 298 lots in November, 217 in December, 61 in January and 31 lots in February. RSS 3 improved further to Rs 73.37 from Rs 72.98 a kg at Bangkok.

Spot prices a kg were: RSS-4: 65 (64.75); RSS-5: 63 (62.25); ungraded: 61 (60.50); ISNR 20: 64 (64); and latex 60%: 43.50 (43.50).

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