| Date: |
28-04-2015 |
| Subject: |
Goods manufacturers urge government not to raise import duty on rubber |
|
KOCHI: The rubber goods manufacturers have urged the government to desist from raising the import duty of rubber till the declaration of the national rubber policy and instead provide a subsidy to the growers to protect them from price crash.
According to All India Rubber Industries Association ,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. As a result the competitiveness of the Indian rubber industry is affected and many rubber units have already closed down. There are over 5500 micro, small and medium rubber enterprises.
The difference between domestic natural rubber production and consumption has grown to almost 4 lakh 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 rubber sector AIRIA said in a statement.
"No doubt, the planters are feeling the heat of drop in prices. So they need to be supported directly by the government with more subsidies. Why throttle the industry by increasing import duties which are already as high as 20%, while the import duty on finished rubber goods is 10% or even lower," said AIRIA president Mohinder Gupta adding that many small rubber goods manufacturers have turned to trading of rubber goods as small manufacturers can't compete with cheaper goods imported from China and other countries.
"If the Kerala / Central Government wishes to help and support the rubber growers, it should be done directly by way of a subsidy to the growers as has been done by the Governments of other major rubber producing countries like Thailand, Malaysia, Indonesia, Sri Lanka etc. No other country has penalized their respective rubber consuming interests by effecting hike in duties or imposing any other restrictions", said Gupta.
Source : economictimes.indiatimes.com
|