Lok Sabha Question No. 132 (UNSTARRED), answered on 2015-11-30
Subject: Rubber Growers
Ministry: COMMERCE AND INDUSTRY
Asked by: C. N. JAYADEVAN

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

## LOK SABHA UNSTARRED QUESTION NO. 132 TO BE ANSWERED ON 30 TH  NOVEMBER, 2015

## RUBBER GROWERS

## 132. SHRI C.N. JAYADEVAN:

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

- a) whether there is a continued crash in the prices of rubber during the last three years and the current year;
- b) if so, the details thereof, year-wise; and
- c) the measures taken by the Government to help rubber growers in Kerala?

## 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) & (b): Government  is  aware  of  the  decline  in  the  prices  of  Natural  Rubber  (NR)  caused primarily by fall in rubber prices in the international markets and the lower demand for the type  of  NR  produced  domestically.    Main  reasons  for  the  decline  of  rubber  prices  in  the international market are weak demand for NR due to moderating economic growth in China, Increase  in  world  stock  of  NR  particularly  in  Thailand  and  low  oil  prices  resulting  in  low prices of synthetic rubber.  However, the domestic rubber prices have generally stayed above international prices.

Details of prices of NR in the domestic and international market for the last three years are given below:

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/ Month | Domestic (RSS 4 Kottayam) | Internati- onal (RSS 3 Bangkok) | Domestic (ISNR 20 Kottayam ) | Internat-ional (SMR 20 Kuala Lumpur) | Domestic (Kottayam) | International (Kuala Lumpur) |
| 2012-13     | 176.82                    | 175.76                          | 168.17                       | 160.89                               | 117.72              | 111.64                       |
| 2013-14     | 166.02                    | 155.25                          | 156.43                       | 137.14                               | 123.31              | 101.06                       |

|             | Sheet rubber              | Sheet rubber                    | Block rubber                 | Block rubber                         | Latex (60% drc)     | Latex (60% drc)              |
|-------------|---------------------------|---------------------------------|------------------------------|--------------------------------------|---------------------|------------------------------|
| Year/ Month | Domestic (RSS 4 Kottayam) | Internati- onal (RSS 3 Bangkok) | Domestic (ISNR 20 Kottayam ) | Internat-ional (SMR 20 Kuala Lumpur) | Domestic (Kottayam) | International (Kuala Lumpur) |
| 2014-15     | 132.57                    | 112.71                          | 114.40                       | 96.04                                | 94.46               | 77.07                        |
| Oct., 2015  | 114.10                    | 86.28                           | 102.64                       | 81.98                                | 86.66               | 62.60                        |

- (c) The Government has recently 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. The  Government  has  also  reduced  the  period  of  utilization  of  imported  dry  rubber  under advance  licensing  scheme  from  18  months  to  6  months.  RSS  (Ribbed  Smoked  Sheet)  and TSR  (Technically  Specified  Rubber)  has  been  added  in  Merchandise  Export  from  India Scheme (MEIS) which would make them eligible for an incentive at the rate of two per cent for exports vide DGFT Public Notice No. 44/2015-20 dated 29 October 2015.

*******