Lok Sabha Question No. 96 (UNSTARRED), answered on 2015-11-30
Subject: Production and Import of Rubber
Ministry: COMMERCE AND INDUSTRY
Asked by: KURUPPASSERY VARKEY THOMAS, RAMACHANDRAN MULLAPPALLY, FEROZE VARUN GANDHI, PONNUSAMY VENUGOPAL

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

## LOK SABHA UNSTARRED QUESTION NO. 96 TO BE ANSWERED ON 30 TH  NOVEMBER, 2015

## PRODUCTION AND IMPORT OF RUBBER

96. PROF. K.V. THOMAS:

SHRI MULLAPPALLY RAMACHANDRAN:

SHRI FEROZE VARUN GANDHI:

DR. P. VENUGOPAL:

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

- a) the total quantum of natural rubber produced and imported in the country during the last three years and the current year, year-wise;
- b) whether there is a consistent drop in the production of natural rubber during the said period and if so, the details thereof, year-wise along with the reasons therefor;
- c) whether a new rubber policy has been formulated by the Government and if so, the details  thereof  and  the  extent  to  which  it  is  likely  to  help  rubber  growers  in  the country; and
- d) the steps taken by the Government to boost rubber production in the country and address the problems faced by rubber growers?

## ANSWER

वाणिज् य एवं उद्योग राज् य मंत्री )श्रीमती निममला सीतारमि((स्वतंत्र प्रभार ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) The production and import of rubber in the country during the last three years and current year is as under:
- (b) Domestic  production  of  NR  in  2013-14  was  low  due  to  adverse  weather conditions,  incidence  of  leaf  diseases  and  low  rubber  prices.  NR  production  in 2014-15 and current year is low mainly due to low rubber prices.
- (c) The  Government  of  India  constituted  an  Expert  Committee  on  16  June  2014  to examine  issues  related  to  rubber  production,  development,  consumption  and exports and suggest a National Policy on Rubber in the interest of both the growers as well as consumers. The Expert Committee consisted of experts and stakeholders of rubber industry including representatives of relevant Ministries and Departments  of  the  Central  Government,  State  Governments  of  Kerala  and Tripura, Rubber Board, Associations of NR growers, Associations of rubber based industries  including  manufacturers of  tyres,  latex,  block  rubber,  synthetic  rubber and  academic  &  research  oriented  institutions  in  the  government  and  the  nongovernmental  sector.  The  final  draft  of  the  Policy  has  been  received  from  the Committee.
- (d) Several  programmes  covering  research,  extension  and  provision  of  financial assistance  are  being  implemented during 12 th Five  Year  Plan  to  increase  rubber production  through  new  planting,  replanting  of  uneconomic  plantations  and productivity enhancement. The scale of financial assistance for new planting and replanting is as follows:-

| Year                    |   Production (tonnes) |   Import (tonnes) |
|-------------------------|-----------------------|-------------------|
| 2012-13                 |                913700 |            262753 |
| 2013-14                 |                774000 |            360263 |
| 2014-15                 |                645000 |            442130 |
| 2015-16 (April-October) |                329000 |            252587 |

| Region                               | Planting subsidy in 12 th Plan                                                                      |
|--------------------------------------|-----------------------------------------------------------------------------------------------------|
| Traditional region                   | Rs. 25,000 per ha                                                                                   |
| Non-traditional region other than NE | Rs.35,000 per ha (planting subsidy - Rs.30000, reimbursement of cost of planting material- Rs.5000) |
| NE region                            | Rs.35,000 per ha (planting subsidy - Rs.30000, reimbursement of cost of planting material- Rs.5000) |

Other steps taken to regulate import and promote export of NR are the following.

-  DGFT reduced the export obligation period to six months for NR from the date of clearance of  each consignment under Advance Authorisation/DFIA Schemes in January 2015.
-  Import duty on dry forms of NR was raised from '20% or Rs 30 per kg whichever is lower' to '25% or Rs 30 a kg whichever is lower' with effect from 30 April 2015.
-  Added RSS (Ribbed Smoked Sheet) and TSR (Technically Specified Rubber) is included in Merchandise Export from India Scheme (MEIS) which makes them

eligible for an incentive at the rate of two per cent for exports vide DGFT Public Notice No. 44/2015-20 dtd. 29 October 2015.

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