Micro, small and medium rubber enterprises have protested against any further import duty hike on natural rubber. The All India Rubber Industries Association (AIRIA) in a petition to the government has asked for taking into consideration the plight of over 5,500 rubber MSMEs in the country before taking any step.

An expert group formed by the government last year has been finalising the national rubber policy. The group has had a series of meetings with both rubber producers and consumers and has taken a note of their respective issues and concerns.

The final report of the working group is to be released soon. In all fairness, the government needs to wait for the national rubber policy and take a concerted decision on a major issue such as increasing the duty, Mohinder Gupta, President, AIRIA, said.

According to rubber MSMEs, India already levies one of the highest duties on import of rubber and one of the lowest duties on import of finished rubber goods. As a result, the competitiveness of the Indian rubber industry is affected and many rubber units have already closed down.

The difference between domestic rubber production and consumption has grown to almost 4 lakh tonnes. There is no other way but to import rubber to keep the factories running. Import duty on rubber, therefore, should be reduced and brought to the level of import of finished rubber goods to address the inverted duty in the rubber sector, the association said.

If the Kerala/Central Government wish to help and support the rubber growers, it should be done directly by way of a subsidy to the growers as has been done by the governments of other major rubber producing countries like Thailand, Malaysia, Indonesia, Sri Lanka. No other country has penalised their respective rubber consuming interests by effecting hike in duty or imposing any other restrictions, Gupta said.

Source:thehindubusinessline.com