The Hindu Business Line : Centre rules out rubber export ban

At a meeting with the various stakeholders of natural rubber sector at the Rubber Board, the Union Minister of State for Commerce, Mr Jairam Ramesh, said there would not be any ban on exports as sought by tyre manufacturers and other consuming industries.

The Automotive Tyre Manufacturers' Association (ATMA), representing the country's tyre companies, and the All India Rubber Industries' Association had earlier sought a temporary ban on natural rubber exports to tide over a perceived shortage of the commodity in the market.

At Wednesday's meeting, Mr Ramesh said the Government's policy was not to tinker with the exports and imports. "The Minister categorically ruled out any ban on rubber exports," a rubber industry representative who attended the meeting said.

Export figures

India exported around 70,000 tonnes of natural rubber during 2005-06. The Rubber Board has projected that this year exports would touch 50,000 tonnes.

FDI in processing

On the decision to allow foreign direct investment (FDI) in rubber processing, some of the attendees wanted a re-think by the Centre since they feared permitting FDI would be detrimental to the interest of local players.

The Kerala Government representative also said the State, which produces over 90 per cent of India's natural rubber, was not consulted before the decision was taken.

Mr Ramesh asked the Rubber Board to prepare a note on this issue.

Subsidy issue

The Minister also wanted a scheme to be prepared on the issue of providing subsidy for new plantation and replantation.

It was pointed out that the present subsidy of Rs 20,000 for a hectare was inadequate to meet the rising expenses.

Over 50 stakeholders of the industry, representing growers, dealers, processors, state government and consuming sectors such as tyre manufacturers attended the meeting.

Our Correspondent reports from Kotttayam: The Government is taking major initiatives to strengthen the Rubber Industry, said Mr Ramesh.

A Special Purpose Rubber Fund ( SPRF ) similar to the Special Purpose Tea Fund was being finalised and it would be introduced shortly, he said, adding that the Rubber Board had been urged to restructure the replantation programme.

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