Lok Sabha Question No. 357 (STARRED), answered on 2026-03-17
Subject: Rubber Price Stabilisation Fund
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Rajmohan Unnithan

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

## LOK SABHA STARRED QUESTION NO. 357 ANSWERED ON 17/03/2026

RUBBER PRICE STABILIZATION FUND

357. SHRI RAJMOHAN UNNITHAN :

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether  the  Government  has  examined  the  proposal  for  establishing  a Rubber Price Stabilisation Fund with an investment of Rs. 1000 crore, if so, the details thereof;
- (b) whether domestic rubber farmers continue to suffer due to import surges and global price volatility;
- (c) whether consultations with rubber-growing States have been held;
- (d) if so, the details thereof; and
- (e) the steps taken or proposed to be taken to protect farmers' income security?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में मंत्री ( श्री पीयूष गोयल ) THE MINISTER IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

(a) to (e) A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY OF PART (a) TO (e) OF LOK SABHA STARRED  QUESTION  NO. 357 FOR ANSWER  ON  17 th MARCH, 2026 REGARDING 'RUBBER PRICE STABILISATION FUND'

(a) to (d) The import of Natural Rubber in FY 2024-25 was 550,918 tonnes as against 546,369  tonnes  during  the  FY  2021-22,  with  no  significant  increase  overall  in  this period. The import of Natural Rubber during April to January, 2025-26 was 399,535 tonnes  as  against  485,666  tonnes  during  the  same  period  of  2024-25  showing  a decline of 17.73%.  The prices of natural rubber are determined in the open market based on demand and supply.  International prices also influence domestic prices. The average price of natural rubber (RSS 4 grade) in Kottayam, Kerala during the period April to January, 2025-26 has been Rs. 193.77 per kg compared to an average price of Rs. 170.77 per kg for the period of FY 2021-22 to FY 2024-25.

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 Nhava Sheva in January 2016. Further, in the Union Budget 2023-24, the rate of custom duty on compound rubber was increased from 10% to 25% or Rs. 30 per kg whichever is lower. Currently, no proposal for establishing a Rubber  Price Stabilisation Fund is under consideration in Department of Commerce.

(e)  Government  of  India  through  Rubber  Board  is  implementing  the  scheme 'Sustainable and Inclusive Development of Natural Rubber Sector' for the benefit of natural  rubber  sector  in  the  country.  Under  the  scheme,  Rubber  Board  provides financial / technical assistance for inter alia planting / replanting of natural rubber, rain guarding, promotion of good agricultural practices, prevention of diseases in order to increase  the  productivity  and  production  of  natural  rubber.   Under  the  Scheme capacity  building  programmes  viz.,  training,  demonstrations  and  skill  development programmes are also conducted by the Board.