Lok Sabha Question No. 3219 (UNSTARRED), answered on 2016-12-05
Subject: Price of Natural Rubber
Ministry: COMMERCE AND INDUSTRY
Asked by: PARAYAMPARANBIL KUTTAPPAN BIJU, PRALHAD VENKATESH JOSHI

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

## LOK SABHA UNSTARRED QUESTION NO. 3219 TO BE ANSWERED ON 05 th  DECEMBER, 2016

## PRICE OF NATURAL RUBBER

## 3219.  SHRI P.K. BIJU: SHRI PRALHAD JOSHI:

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

- (a) whether the price of natural rubber has come down during the last three years and the current year;
- (b) if  so,  the  details  thereof  and  the  reasons  therefor  indicating  the  prices  of  natural rubber during the said period;
- (c) whether  the  rubber  growers  in  Karnataka  have  not  been  compensated  for  the difference between MSP and market price;
- (d) if so, the details thereof and the reasons therefor along with the steps taken by the Government to arrest the fall of natural rubber prices; and
- (e) the quantity of rubber produced in India during the last three years and the current year, State-wise?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) to  (d)  Prices  of  Natural  Rubber  (NR)  has  shown  a  decreasing  trend  during  the  last three years and a slight increase is seen in the current year in Indian and international markets.    Average  annual  prices  of  RSS  4  grade  rubber  in  India  and  that  of comparable grade RSS 3 in Bangkok market are as under:

|                    | Sheet rubber (Rs./kg)     | Sheet rubber (Rs./kg)         |
|--------------------|---------------------------|-------------------------------|
|                    | Domestic (RSS 4 Kottayam) | International (RSS 3 Bangkok) |
| 2013-14            | 166.02                    | 155.25                        |
| 2014-15            | 132.57                    | 112.71                        |
| 2015-16            | 113.06                    | 96.36                         |
| April-October 2016 | 130.53                    | 111.95                        |

Fall  in  price  of  the  Natural  Rubber  (NR)  is  attributable,  inter  alia,  to  trends  in economic growth, production in major NR producing countries and demand in major consuming  countries.  Domestic  NR  prices  generally  follow  the  trends  in  the International market.Natural Rubber being a commercial crop is not considered for minimum price support.

(e) State  wiseproduction  of  Natural  Rubber  in  India  during  2013-14  to  2015-16  is  as under:

(Production in Tonne)

| State      |   2013-14 |   2014-15 |   2015-16(p) |
|------------|-----------|-----------|--------------|
| Kerala     |    648220 |    507700 |       438630 |
| Tripura    |     39000 |     47000 |        44245 |
| Karnataka  |     35230 |     34560 |        29400 |
| Tamil Nadu |     25000 |     23785 |        19495 |
| Assam      |     13600 |     17310 |        14560 |
| Meghalaya  |      7570 |      8510 |         7360 |
| Nagaland   |      1900 |      2390 |         3020 |
| Manipur    |      1065 |      1150 |         1660 |
| Others     |      2415 |      2595 |         3630 |
| Total      |    774000 |    645000 |       562000 |

(p)-Provisional.

Production of NR during April-October 2016 is estimated as 365,000 tonne.

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