State to launch company to promote rubber products

The Kerala government is planning to launch a company based on the public-private partnership (PPP) model to spur production of value-added rubber products as well as for marketing. The new company will be on the lines of Cochin International Airport Ltd (CIAL), where the government has a minority stake (35 per cent in case of CIAL). Preliminary works are on to float it by next month, according to state government officials.
 
State minister for industries, sports and youth affairs AC Moideen said that chief minister Pinarayi Vijayan, ministers of related departments and senior officials held a meeting on June 7. The meeting decided to form a CIAL-type company as a first step to strengthen the rubber sector.
 
“Appointment of a special officer to look into formation of a CIAL-type company, to prepare a detailed project report and to study the product range and related matters is under consideration,” said a government official.

 
A committee has been formed under the aegis of the state’s chief secretary to nurture the rubber industry by encouraging production of value-added products in the state and develop a strategy towards this. Kerala produces more than 80 per cent of the total natural rubber in the country.  According to the provisional estimates of the Rubber Board, under the ministry of commerce and industry, natural rubber (NR) production in 2017-18 was 694,000 tonnes, a 0.4 per cent increase over 691,000 tonnes in 2016-17. NR production was initially projected at 800,000 tonnes in 2017-18. However, NR production in 2018-19 is projected at 730,000 tonne, which is a growth of 5.2 per cent.
 
“The projected NR production is considerably lower as compared to the production potential, considering the prevailing low rubber prices and the extent of the area that is untapped. Consumption of NR in 2018-19 is projected at 1.2 million tonnes, an increase of 8 per cent,” said MK Shanmuga Sundaram, chairman and executive director, the Rubber Board, recently. Consumption of NR increased from 1.04 million tonnes in 2016-17 to 1.11 million tonnes in 2017-18.