Rubber sector to set up joint body

An apex body with representation from the Rubber Board, the All India Rubber Industries Association (AIRIA), Automotive Tyre Manufacturers' Association (ATMA), United Planters' Association of South India (UPASI), Kerala State Rubber Co-operative (Rubco), and Chemicals and Allied Products Export Promotion Council (CAPEXIL) will be set up to study and monitor the rubber sector in India.

This was decided at a meeting organised by the Rubber Board on June 24, at Kochi.

"The umbrella group will tackle issues relating to price, import, export and stock of natural rubber in the country as well as the divergent perspectives of both the producing and consuming segments of rubber," said Anil Sampat, chairman of India Rubber Expo and past president of AIRIA.

He said units would like prices to be linked to global pricing, as the steep price hike in the domestic sector had affected consuming industries.

"With a prevailing price at around Rs 65 per kg and a sales tax of 12.5 per cent, over and above a cess of Rs 1.50 and duty of Rs 3 per kg, it works out cheaper by Rs 10 or so, to import rubber into the country in spite of restrictions," he said.

Issues relating to importing rubber would be examined by the group. Rubber producers were opposed to imports, alleging it depressed prices. Rubber buyers would like duty free imports to achieve costs that were internationally competitive.

Other issues included export subsidies which were put in place two years ago. The current subsidies on exports were around Rs 6-7 per kg. of rubber.