Lok Sabha Question No. 362 (UNSTARRED), answered on 2021-02-03
Subject: Natural Rubber Farmers
Ministry: COMMERCE AND INDUSTRY
Asked by: Suresh Kodikunnil

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

## LOK SABHA UNSTARRED QUESTION NO. 362 TO BE ANSWERED ON 03 rd FEBRUARY, 2021

## NATURAL RUBBER FARMERS

## 362. SHRI KODIKUNNIL SURESH:

Will the Minister of COMMERCE & INDUSTRY ( वा�ण�य  एवं  उ�योग  मं�ी ) be pleased to state:

- (a) whether the Government has taken any decision to help the small scale domestic Natural Rubber  farmers  in  the  country  and  if  so,  the  details  thereof  and  action  taken  by  the Government in this matter;
- (b) whether the Government has proposed to hike the import duty of Natural Rubber and if so, the details thereof and if not, the reasons therefor;
- (c) whether  the  Government  is  aware  that  small  scale  rubber  farmers  and  workers  are enduring crises affecting their survival due to decreased price of Natural Rubber in the open market;
- (d) if so, the details thereof and action taken by the Government in this regard;
- (e) whether the Government has any plan to provide support price to Natural Rubber and declare moratorium on their Bank loans; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI HARDEEP SINGH PURI)

(a) To support the Natural Rubber (NR) sector and help farmers, Government through the Rubber Board  is implementing  the  Sustainable  and  Inclusive  Development  of  Natural  Rubber  Sector scheme.  The scheme provides for financial and technical assistance for planting, supply of quality planting  materials,  support  for  grower  forums,  training  and  skill  development  programme. Activities also include generation and distribution of quality planting materials; promoting grower forums such as Rubber Producers Societies (RPS); promoting Group Processing Centres (GPCs); assistance  for  processing;  training  for  tappers;  contact  programmes  and  seminars;  welfare measures for plantation workers; skill development programmes under Prime Ministers Kaushal Vikas Yojana (PMKVY) etc.

(b) The WTO bound custom duty rate is 25% for all dry forms of NR (HS 400121, 400122 and 400129). For latex (HS 400110) it is unbound.  Current applied custom duty rate on dry forms of NR is 25% or Rs. 30 per kg., whichever  is  lower and that on latex  is 70% or Rs. 49 per kg., whichever is lower.  As the import duty on dry forms of NR is already equal to bound rate of 25%, it cannot be raised further.  Import duty on latex is at the significant level of 70%.

(c) & (d) NR prices are determined by market forces 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 futures markets. The domestic NR market generally follows the trend  in  the  world  market  with  some divergence  due  to  region  specific  and  domestic factors. Rubber prices have increased in the country in the recent past and the average price for the RSS4 grade in December, 2020 was 158.42 per kg.

(e) & (f) Natural Rubber is not included in the items for which Minimum Support Price(MSP) is notified.    However,  the  Government  /Reserve  Bank  of  India  (RBI),  have  taken  various  policy measures to ease the financial stress caused by the COVID 19 pandemic, by providing relief on debt servicing and improving access to working capital. RBI vide its circular dated 17 th April 2020, had permitted all commercial banks, to grant a moratorium till 31 st August 2020, on payment of all instalments in respect of term loans (including agricultural term loans, retail and crop loans). The repayment schedule for such loans as also the residual tenor, has been allowed to be shifted across  the  board.  In  respect  of  working  capital  facilities  sanctioned  in  the  form  of  cash credit/overdraft, lending institutions were permitted to allow a deferment till 31 st August 2020, on recovery of interest applied in respect of all such facilities. This facility is applicable to all loans to agriculture and allied activities including rubber sector.

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