Lok Sabha Question No. 1927 (UNSTARRED), answered on 2016-11-28
Subject: Production and Import of Natural Rubber
Ministry: COMMERCE AND INDUSTRY
Asked by: S. RAJENDRAN, M. I. SHANAVAS

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1927 TO BE ANSWERED ON 28 th  NOVEMBER, 2016

## PRODUCTION AND IMPORT OF NATURAL RUBBER

## 1927.  SHRI S. RAJENDRAN: SHRI M.I. SHANAVAS:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) the total production of natural rubber in the country during the last three years and the current year, year-wise;
- (b) whether there is  only  a  small  surplus  of  natural  rubber  in  the  market  for  the  next  few years and if so, the details thereof and the reasons therefor along with the reaction of the Government thereto;
- (c) whether  there  has  been  any  increase  in  the  import  of  rubber/  natural  rubber  in  the country  during  the  last  three  years  and  the  current  year  and  if  so,  the  details  thereof indicating the details of rubber imports during the said period;
- (d) whether  the  increase  in  rubber  imports  has  caused  a  decrease  in  the  rates  of  natural rubber produced domestically causing economic hardship for small and medium rubber growers and if so, the details thereof;
- (e) whether  the  Government  is  considering  to  reduce  the  quantum  of  rubber  imports  or moratorium  of  imports  to  address  the  crisis  in  domestic  market  and  if  so,  the  details thereof;
- (f) whether  there  have  been  any  demands/  representations  for  supporting  the  small  scale rubber  growers  from  any  representative  body  of  rubber  growers/  State  Governments including  Kerala  and  if  so,  the  details  thereof  along  with  the  action  taken  by  the Government thereon; and
- (g) whether  the  Government  has  decided  to  implement  safeguard  duty  as  per  the  19th section of World Trade Agreement for rubber and if so, the details thereof?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

## (INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

- (a) &  (b)The total production of Natural Rubber (NR) in the country during the last three years and current year is as under:

## Production of NR

| Year    | Quantity (Tonne)   |
|---------|--------------------|
| 2013-14 | 774,000            |

| 2014-15                   | 645,000   |
|---------------------------|-----------|
| 2015-16                   | 562,000   |
| 2016-17 (April - October) | 365,000   |

No surplus of natural rubber is expected in the domestic market as there has been a deficit in production and consumption in NR.

- (c) There has been increase in the import of NR into the country during the last three years and the current year details of which are as under:

## Import of NR

| Year                      | Quantity (Tonne)   |
|---------------------------|--------------------|
| 2013-14                   | 360,263            |
| 2014-15                   | 442,130            |
| 2015-16                   | 458,374            |
| 2016-17 (April - October) | 294,937            |

- (d) Fall  in  price  of  the  Natural  Rubber  (NR)  is  attributable,  inter  alia,  to  trends  in  economic growth, production in  major  producing  countries  and  demand  in  major  consuming countries.Domestic  NR  prices  generally  follow  the  trends  in  the  international  market. Further, domestic production of NR is only about 55% of the total domestic consumption.
- (e) Quantitative restrictions (QRs) on NR imports were removed with effect from April 2001 under WTO commitments and hence the government cannot reduce the quantum of import or  impose  moratorium  on  import.  Quantum  of  NR  import  can  be  regulated  only  through tariffs subject to bound rates. NR is imported into India mainly in dry forms and the bound rate is 25% and the prevailing import duty of NR is also 25%.
- (f) There  have  been  demands/representations  for  supporting  the  small  scale  rubber  growers from representative bodies of rubber growers and State Governments including Kerala.  The Government has increased the duty on import of  dry rubber from  '20% or Rs 30 per kg whichever is  lower'  to  '25% or  Rs.  30  per  kg.  whichever  is  lower'  w.e.f.    30.4.2015  in order to increase the cost of imported rubber and create demand for locally produced rubber. The Government has  also  reduced the  period  of  utilization  of  imported  dry  rubber  under advance licensing scheme from 18 months to 6 months.  Director General of Foreign Trade (DGFT) has imposed port restriction on the import of natural rubber by restricting the port of entry to Chennai and Nhava Sheva (Jawaharlal Nehru Port) since 20 th January, 2016.
- (g) The Government has not imposed safeguard duty on imports of rubber.

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