Lok Sabha Question No. 1247 (UNSTARRED), answered on 2024-07-30
Subject: MSP for Natural Rubber
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri K C Venugopal

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 1247

TO BE ANSWERED ON THE 30 TH  JULY, 2024

## MSP FOR NATURAL RUBBER

1247.     SHRI K C VENUGOPAL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण मंğी be pleased to state:

- (a) the  details  of  action  taken  by  the  Government  to  protect  natural  rubber  farmers, particularly in safeguarding the price of natural rubber against imports;
- (b) whether  the  Government  is  ready  to  provide  Minimum  Support  Price  (MSP)  to natural rubber;
- (c) whether  the  Government  has  any  plans  to  frame  a  National  Rubber  Policy  to safeguard the interests of small and medium farmers; and
- (d) whether  there  is  any  plan  to  include  natural  rubber  in  the  proposed  Livelihood Security  Box  and  recategorize  it  as  an  agricultural  commodity  in  the  World  Trade Organization agreements and various Free Trade Agreements (FTAs) and Regional Trade Agreements(RTAs)?

## ANSWER

MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

कृ ͪष एवं ͩकसान कãयाण राÏय मंğी      ( SHRI RAMNATH THAKUR)

- (a): The price of natural rubber is determined in the open market based on demand and  supply.  The  International  rubber  prices  also  influence  the  domestic  prices.  The Government, with the objective to regulate the import of natural rubber, had increased the duty on import of dry rubber from '20% or Rs. 30 per kg whichever is lower' to bound rate of '25% or Rs. 30 per kg whichever is lower' w.e.f 30.4.2015. The Government had also reduced the period of utilization of imported dry rubber under advance licensing scheme from 18 months to 6 months in January 2015. The Port of entry for import of Natural Rubber had also been restricted to ports at Chennai and NhavaSheva in January 2016. Further, in the Union Budget 2023-24, the rate of custom duty on compound rubber was increased from 10% to 25%.

(b): Government fixes Minimum Support Prices (MSP) for 22 mandated agricultural crops  and  Fair  &  Remunerative  Price  (FRP)  for  sugarcane  on  the  basis  of  the recommendations  of  the  Commission  for  Agricultural  Costs  &  Prices  (CACP),  after considering  the  views  of  State  Governments  and  Central  Ministries  /  Departments concerned  and  other  relevant  factors.  CACP  also  holds  consultations  with  all  the stakeholders  and  seeks  suggestions  for  both  price  and  non-price  recommendations. Suggestions/ representations from State Governments and various farmer organizations are also received from time to time for the coverage of crops under MSP. The inclusion of crops under MSP framework is however, dependent on several factors which include essential  for  food  security,  relatively  large  shelf  life,  widely  grown,  item  of  mass consumption, among others.

(c): The Department of Commerce had brought out the National Rubber Policy in March 2019, which inter alia covers new planting and replanting of rubber, support for growers, processing and marketing of natural rubber, labour shortage, grower forums, external  trade,  Centre-State  integrated  strategies,  research,  training,  rubber  product manufacturing and export, climate change concerns & carbon market.

(d): Natural Rubber cannot be treated as an agricultural product. Though, the Natural Rubber cultivation may be treated as an agricultural activity, the income from its postcultivation practices may not be treated as an agricultural income as it is exclusively used as  a  raw  material  for  industrial  purpose.  However,  in  majority  of existing  Free Trade Agreements (FTAs) and Regional Trade Agreements (RTAs), Natural Rubber is included in exclusion lists to protect the interest of rubber growers.

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