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The plantation sector has requested the Centre to levy safeguard duty on the imports of natural rubber to protect the livelihood of small producers as well as to maintain the NR production capacity intact.
In the pre-budget memorandum to the Finance Minister for the incorporation in the Union Budget 2019-20, the United Planters Association of South India (Upasi) pointed out that the increased imports of natural rubber and unremunerative prices have forced some producers to abandon rubber tapping.
They are not even able to pay the tapper wages and incur other direct expenses. The situation, if allowed to continue, will make India fully dependent on foreign countries for this strategic raw material, AE Joseph, Upasi president, said.
Fall in prices
The natural rubber prices (RSS IV) after reaching a high of ₹243/kg in April 2011, has registered a sharp decline and reached ₹102 in December 2015. Of late, there had been an increase in domestic prices largely due to low production on account of seasonal factors. The main reason for the decline in the domestic price was on account of increased imports of rubber into India, thereby the consuming industry was able to keep away from the domestic market, he said.
In absolute terms, imports has increased from 77,762 tonne in 2008-09 to 5,82,351 tonne during 2018-19. Imports as a percentage of production had increased from 1.42 per cent in 2000-01 to 90.7 per cent in 2018-19. Imports as percentage of consumption kept increasing to reach 48.1 per cent in 2018-19.
Plea for more funds
Upasi also urged the government for higher allocation of funds to the commodity boards as steep cut in the allotment of funds had affected the incentive schemes which are currently implemented by the Boards.
Considerable reduction made in allocation of funds to the Commodity Boards in the Union Budgets have affected the plantation sector adversely, as the boards are not in a position to disburse the dues to the growers under various developmental schemes.
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