Makers of rubber products feel the heat of price hike

Aggrieved over the grim scenario, the manufacturers are urging the government to ease import duty on natural rubber and to regulate the import of finished products. They also urge the government to take steps to enhance natural rubber production in the country by exploring plantations in new regions like the Konkan.

Thiruvananthapuram: Even as the increase in the price of natural rubber has brought cheers to the scores of rubber planters in the country, mostly in Kerala, manufacturers of rubber products are feeling the heat.

Owing to the price increase, many manufacturers of products like gloves and balloons are now importing finished products while others are using synthetic rubber.

Rubber price, which is now around Rs 235 per kilogram, is crossing the Rs 200 mark almost after 13 years.

Aggrieved over the grim scenario, the manufacturers are urging the government to ease import duty on natural rubber and to regulate the import of finished products by enhancing duty. They also urge the government to take steps to enhance natural rubber production in the country by exploring plantations in new regions like the Konkan.

All India Rubber Industries Association president Shashi Singh told DH that even as the regulations on import would protect interest of local farmers, the government should protect the interest of manufacturers also.

Many manufacturers are now importing finished products and selling it by taking margin. It could affect the employment at the production facilities, he pointed out.

The import duty of latex is now 70 percent and that of natural rubber is 25 percent, whereas the import duty on finished products is only 10 percent.

"The government should increase the import duty on finished products and reduce the import duty on latex and natural rubber considering the present situation," Singh said.

Industry sources also stress on the need to enhance the production of rubber in the country. With a total production of 8.57 lakh tons and demand of 14.16 lakh tons, there is already a deficit of 5.5 lakh tons in the country.

"The recent moves by the tyre manufacturers, who are the major rubber consumers, to go for extensive rubber plantation in North-east states is a welcome move. But the government should also explore more places like Konkan for rubber plantations and offer incentives. The target should be to make the country self-sufficient in rubber production by 2047," said Singh.