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The government is working on a comprehensive national policy for the rubber sector to address a host of issues being faced by growers and the industry.
"An inter-ministerial panel, with representatives from all stakeholders, will soon be set up to work on a draft national policy on rubber," a senior government official told PTI.
The objectives of the policy would include supply and demand projection, address duty inversion and strike a balance between interest of growers and industry, the official said.
The proposed panel to be headed by the Commerce Secretary will deliberate with growers, consumers and industry experts before drafting a national policy.
With rise in demand for rubber from the auto sector, the need for a national policy was felt as at present the concerns of the rubber sector are being handled by two-three departments under various ministries.
The official observed that there is a need to rationalise domestic rubber prices as growers get affected with steep fall in prices when imports rise. On the other side, the industry that depends on imports to meet its shortages, cannot be discouraged to source raw materials from overseas market.
India, the world's fourth largest producer of natural rubber, is dependent on imports as domestic production is short of demand.
In 2012-13 fiscal, rubber production was 9,13,700 tonnes, lower than consumption of 9,72,705 tonnes.
