Date:30/07/2004 URL: http://www.thehindubusinessline.com/2004/07/30/stories/2004073001111200.htm

Back Rubber trade seeks review of export policy

Our Bureau

Kochi , July 29

THE Cochin Rubber Merchants Association has urged the Union Commerce Ministry to review policies regarding rubber exports and to continue with the existing 20 per cent import duty for the commodity till March 2006.

In a memorandum submitted to the Commerce Minister, the Association President, Mr N. Radhakrishnan, said the substantial increase in the exports of natural rubber during the last two years resulted in reduction of stock in the domestic market and subsequent flare up of prices.

India exported 1.28 lakh tonnes of rubber in two years, as against a target of one lakh tonnes of exports during the current Five-Year Plan.

"This spurt in exports coupled with cash assistance and favourable international prices paved the way for reduction in the stock of natural rubber from 1,97,000 tonnes in March 2003 to 77,000 tonnes in March 2004," the association pointed out.

It said the Rubber Board allowed exports of 76,000 tonnes of rubber during 2003-04 with cash incentives, as against the target of 50,000 tonnes fixed by the Ministry.

"The additional authorisation, though with good intentions, has put the trade and small scale industry in the doldrums as supplies dried up and prices sky-rocketed to all-time high of Rs 66 per kg. The international price for the equivalent of RSS-4 is around Rs 57 per kg," the association said.

The existing restrictions pertaining to port of import in respect of rubber imports may be relaxed to include Mumbai and Chennai ports also in the list of nominated ports, the association said.