Govt restricts duty free imports of natural rubber

The government today barred duty free imports of natural rubber till March 31 this year under Advance Authorisations (AA) as part of measures to save growers from cheap inward shipments.
An Advance Authorisation is issued to allow duty free import of inputs, which are used to manufacture products for export purpose only.
"Import of natural rubber will not be allowed during the period 21st January 2016 to 31st March 2016 under Advance Authorisations to be issued or revalidated on or after 21st January, 2016," the Directorate general of Foreign Trade (DGFT) said in a notification.
The development comes a day after the DGFT restricting the imports only through two sea ports of Chennai and Nhava Sheva.

Commerce and Industry Minister Nirmala Sitharaman in a tweet said: "natural rubber import restricted to two ports only. Steps taken by the NDA-government to protect small rubber growers when international prices are crashing".
Domestic producers have time and again raised concerns over increasing rubber imports into the country and subsequent prices fall.
The persistent fall in the price of natural rubber had also caused concern among rubber farmers in Kerala, which accounts for more than 94 per cent of the commodity's total production in the country.
India's natural rubber imports have declined by 9 per cent to 2.88 lakh tonnes in the first eight months of the current financial year.