Lok Sabha Question No. 1265 (UNSTARRED), answered on 2019-02-11
Subject: Natural Rubber Policy
Ministry: COMMERCE AND INDUSTRY
Asked by: PRITAM GOPINATH MUNDE, Shrirang Appa Barne, G. HARI, P.K.SREEMATHI TEACHER, RAMACHANDRAN MULLAPPALLY, SHRIKANT EKNATH SHINDE, SHIVAJI ADHALRAO PATIL, M. B. RAJESH, ANANDRAO  ADSUL

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

## LOK SABHA UNSTARRED QUESTION NO. 1265 TO BE ANSWERED ON  11 th  FEBRUARY, 2019

## NATURAL RUBBER POLICY

## 1265.  DR. PRITAM GOPINATH MUNDE:

SHRI SHRIRANG APPA BARNE:

SHRI G. HARI:

SHRIMATI P.K. SREEMATHI TEACHER:

SHRI MULLAPPALLY RAMACHANDRAN:

DR. SHRIKANT EKNATH SHINDE:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI M.B. RAJESH:

SHRI ANANDRAO ADSUL:

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

- (a) whether  the  rubber  industry  will  continue  to  grow  faster,  create  more  employment opportunities, increase exports and add to the economic output of India;
- (b) if  so,  whether  the  Government  has  assessed  the  potential  of  the  rubber  industry  in respect of creation of employment and increase of export and if so, the details thereof;
- (c) whether the rubber industry is facing many issues which create hindrance in the growth of  the  industry  and  if  so,  the  details  thereof  along  with  the  details  of  various  issues faced by rubber cultivators in the country including Kerala;
- (d) whether the Government has proposed  or is developing  a National Rubber Policy to address various issues concerning the sector with a view to boost productivity and also to ensure remunerative price for natural rubber;
- (e) if  so,  the  details thereof along with the time by which a final decision is likely to be taken in this regard; and
- (f) whether the  Government  will  consider  to  reduce  the  import  of  rubber  to  protect  the struggling cultivators and if so, the details thereof?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

(a)&  (b):Consumption  of  rubber  (natural  rubber,  synthetic  rubber  and  reclaimed  rubber)  by domestic rubber products manufacturing sector increased from 1.46 million tonnes in 2010-11 to 1.88 million tonnes in 2017-18& export of rubber products increased by 148% during the period providing/creating employment opportunities in the sector. Rubber Board has projected natural rubber  production  and  consumption  in  2030-31  as  1.41  million  tonne  and  2.04  million  tonne respectively.    Increase  in  rubber  production  and  consumption  would  lead  to  creation  of  more employment and export.  The Indian rubber industry provides the maximum employment per unit capital invested in the Micro Small and Medium Enterprises (MSME) sector.

(c) : Rubber products manufacturing industry is faced with several issues like inadequacy of raw materials, low level of technology in non-tyre sector, competition from imported products etc.  Rubber  growers  in  Kerala  and  other  states  are  confronted  with  issues  such  as  low  prices, shortage of skilled tappers, changing climate etc.

(d) &(e): A Task Force was constituted to recommend short term solutions and long term strategies for mitigating the problems being faced by the rubber growers in the country including those in Kerala especially prevailing low prices, boosting production to bridge the gap between demand and supply, shortage of skilled tappers, changing climate etc., to coordinate and develop synergy  with  the  various  Ministries/  Departments  of  the  Central  Government  and  State Government  and  to  suggest  a  policy  on  rubber.    The  Task  Force  submitted  its  report  to  this Department  including  recommendations  on  short  term  strategy  and  long  term  strategies  for development of Rubber sector in the form of draft National Rubber Policy.

(f): Import of goods is done by importers as per the applicable import policy related to the goods. Import of goods can be free, restricted or prohibited.  Natural Rubber (NR) is free to be imported on payment of customs duty as there are no Quantitative Restrictions (QRs) on its import.  The domestic  NR  priceis  highly  sensitive  to  import  of  NR.    Therefore,  to  address  this  issue,  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' with effect from 30.4.2015 in order to 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  six months. To address various regulatory concerns, 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 NhavaSheva (Jawaharlal Nehru Port) from 20th January, 2016.

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