Lok Sabha Question No. 1027 (UNSTARRED), answered on 2018-12-17
Subject: Natural Rubber
Ministry: COMMERCE AND INDUSTRY
Asked by: (ADV.) JOICE GEORGE, ANTO  ANTONY

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

## LOK SABHA UNSTARRED QUESTION NO. 1027 TO BE ANSWERED ON 17 th  DECEMBER,2018

## NATURAL RUBBER

1027.   ADV. JOICE GEORGE: SHRI ANTO ANTONY:

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

- (a) whether the Government has noticed the recent price crash of natural rubber and if so, the details thereof along with the reaction of the Government in this regard;
- (b) whether the Government has noticed that rubber farmers are in deep trouble and if so, the details thereof along with the reaction of the Government in this regard;
- (c) whether the Government has any statistics regarding the prices of natural rubber in international and domestic markets and if so, the details thereof during the last five years, year-wise and country-wise along with the steps taken by the Government to enhance the price of natural rubber and also the steps taken to enhance its use in the country;
- (d) whether the Government is planning to introduce minimum fare price or minimum import price for natural rubber and if so, the details thereof along with the details of the recommendations, if any, received from the Rubber Board in this regard; and
- (e) whether any International Conference held in Kerala has urged the Government to promote the production and use of natural rubber and if so, the details thereof along with the reaction of the Government in this regard?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

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

(a)& (b) Natural  Rubber  (NR)  prices  have  been  at  relatively  low  levels  during  the recent  past  in  domestic  and  international  markets.    The  Natural  Rubber  (NR)  prices  are determined by market fundamentals and a range of factors which inter-alia include trends in economic  growth  in  major  consuming  countries, oil/synthetic rubber prices, weather conditions and developments in future markets. Domestic NR market generally follows the trends  in  world  market  with  occasional  divergences  due  to  region  specific  and  seasonal factors.The domestic NR prices are also highly sensitive to import of NR.  Hence, to regulate the import of NR, 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 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 NhavaSheva (Jawaharlal Nehru Port) since 20 th January, 2016.

(c) The  prices  of  the  major  traded  forms  of  NR  viz.  sheet  rubber,  block  rubber  and centrifuged latex for the last five years in the domestic and international markets are given in the Annexure.  The use of NR in the country has been steadily increasing and consumption in 2017-18  was  1.11  million  tonnes.    As  the  projected  NR  consumption  in  2030-31  is  2.04 million tonne as against the domestic production of 1.41 million tonne, there is no anticipated situation  of  lack  of  demand.  Steps  to  enhance  use  of  rubber  include  research  on  rubber product manufacturing and related aspects; provision of technical consultancy, training and testing services through Rubber Board; setting up Rubber Parks etc.

(d) No, Madam.  Presently there is no proposal under consideration of the Government to introduce minimum fair price or minimum import price for natural rubber.

(e) The discussions in the India Rubber Meet (IRM) 2018 held at Kochi, Kerala on 30 and 31  October  2018  covered  broadly  production and use  of  NR along with other  aspects related to rubber industry.

******

## Annexure referred to in reply to part (c) of Lok Sabha Unstarred Question No. 1027 for 17.12.2018

| Prices of NR in the domestic and international markets (Rs/Kg)   | Prices of NR in the domestic and international markets (Rs/Kg)   | Prices of NR in the domestic and international markets (Rs/Kg)   | Prices of NR in the domestic and international markets (Rs/Kg)   | Prices of NR in the domestic and international markets (Rs/Kg)   | Prices of NR in the domestic and international markets (Rs/Kg)   | Prices of NR in the domestic and international markets (Rs/Kg)   |
|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|
|                                                                  | Sheet rubber                                                     | Sheet rubber                                                     | Block rubber                                                     | Block rubber                                                     | Latex (60% drc)                                                  | Latex (60% drc)                                                  |
| Year                                                             | Domestic* (RSS 4 Kottayam)                                       | Internati- onal** (RSS 3 Bangkok, Thailand)                      | Domestic* (ISNR 20 Kottayam)                                     | Internat- ional*** (SMR 20 Kuala Lumpur, Malaysia )              | Domestic* (Kottayam)                                             | Internat- ional*** (Kuala Lumpur, Malaysia )                     |
| 2013-14                                                          | 166.02                                                           | 155.25                                                           | 156.43                                                           | 137.14                                                           | 123.31                                                           | 101.06                                                           |
| 2014-15                                                          | 132.57                                                           | 112.71                                                           | 114.40                                                           | 96.04                                                            | 94.46                                                            | 77.07                                                            |
| 2015-16                                                          | 113.06                                                           | 96.36                                                            | 100.42                                                           | 84.81                                                            | 88.28                                                            | 67.08                                                            |
| 2016-17                                                          | 135.49                                                           | 131.78                                                           | 119.22                                                           | 109.13                                                           | 89.10                                                            | 88.77                                                            |
| 2017-18                                                          | 129.80                                                           | 116.78                                                           | 115.17                                                           | 96.55                                                            | 87.90                                                            | 82.28                                                            |
| 2018-19 (Upto November)                                          | 121.56                                                           | 97.72                                                            | 110.20                                                           | 89.02                                                            | 83.53                                                            | 66.55                                                            |

Source:

* Rubber Board

** Rubber Authority of Thailand (RAOT)

*** Malaysian Rubber Board (MRB)