Kerala urges import duty hike to arrest fall in rubber prices

CM Oommen Chandy urged the Centre to consider Rubber Board's data to get a proper estimate on the level of rubber imports

In the light of falling rubber prices, Kerala chief minister Oommen Chandy has urged the Centre to increase the existing 20 per cent import duty on natural rubber.

Intervening in a discussion in the Assembly, he said, there had been a mismatch in the data considered by the Centre and the actual supply-consumption data available with the Rubber Board. He suggested the Centre to consider the Board’s data to get a proper estimate on the level of rubber imports.

On the falling rubber prices, the chief minister said, “A situation should not be created where rubber farmers stop cultivation.” The state government will hold discussions with the rubber consumers—tyre companies—to make them buy rubber from the local market, starting from December 18.

“Fall in rubber price cannot be resolved solely through procurement. Prices will increase if it’s procured in large amounts and kept away from the market. Even after spending Rs 200 crore, enough rubber could not be procured in order to create supply shortage,” Chandy said.

The issue will be brought to the attention of the Prime minister again, he added.

A high-level meeting chaired by the chief minister to discuss the fall in rubber prices has decided to demand a special rubber re-plantation package from the Centre.  

“As the rubber industry is in peril, we aren’t able to compete in the world market. Fair value needs to be fixed for rubber. Recommendations of Kerala should be included while preparing the national policy on rubber,” Chandy said.