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Kochi, July 19 The Cochin Rubber Merchants Association has said that the recent announcement of the Finance Ministry in awarding concessions to exporters in order to compensate the loss suffered by them on account of rupee parity with dollar will not in any way help the natural rubber exporters.

It seems that the Rubber Board and the Commerce Ministry have not done their homework while recommending the relief measures, the Mr N. Radhakrishnan, President of the Association, said in a release issued here.

The present announcement of a two per cent reduction in the interest rate on post- and pre-shipment credit will not give solace to rubber exporters as they lose 11 per cent on export exchange rate alone.

The benefits announced against deemed exports cannot be availed of by rubber exporters unless the Central Government persuade the industry to buy rubber locally at international rates against their export entitlements, instead of importing at high costs, he said.

If such a directive is given, the country will be able to prevent unwanted imports, thereby reducing the glut in the market created by large-scale import in the recent past, besides saving foreign exchange.

The Commerce Ministry is aware that the Indian rubber fetches low rate in the international market due to inconsistency in quality standards and non-compliance of packing standards.

The natural rubber exports have fallen from 73,830 tonnes in 2005-06 to 47,721 tonnes during the first half of 2006-07 and slumped to 8,824 tonnes in the second half. This clearly indicates that the situation is quite alarming, he said.

More Stories on : Rubber | Exports & Imports | Kerala

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