)
Micro, small and medium rubber enterprises have urged the government not to increase the import duty on natural rubber till the Centre-appointed expert group submits its final report.
In a petition to the Union government, the All India Rubber Industries Association (AIRIA) said the government should take into consideration the plight of over 5,500 rubber MSMEs in the country before taking any step in this regard.
The government had set up an expert group last year to finalise the national rubber policy. Since then, the group has had a series of meetings with both natural rubber producers and consumers. The final report of is to be released soon.
Airia president Mohinder Gupta said the government should wait for the national rubber policy and take a concerted decision on a major issue like increasing duties.
According to the sector, India already levies one of the highest duties on import of natural rubber and one of the lowest duties on import of finished rubber goods. This has hit the Indian rubber industry and many units have already closed.
The difference between domestic NR production and consumption has grown to almost 400,000 tonnes. There is no other way but to import rubber to keep the factories running. Import duties on rubber, therefore, should be reduced and brought to the level of import of finished rubber goods so as to address inverted duty in the sector, the association said.
Planters, who are already hit by the drop in prices, need to be supported directly by the government. Why throttle the industry by increasing import duties, which are already as high as 20 per cent, while the import duty on finished rubber goods is 10 per cent or even lower? he questioned.
Unable to compete with cheaper imported goods from China and other countries, many small rubber goods manufacturers have turned to trading of rubber goods.
Earlier this year, the government reduced the export obligation period to six months from 18 months wherever natural rubber is allowed as an input under the Advance Authorisation scheme. Rubber MSMEs are grappling with the complexities associated with the reduction in exemption period. Any further hike in import duties would aggravate the situation, he said.
