The Central government has set up an expert committee to draft a national policy on rubber. The panel has been asked to give its recommendations and the draft policy within six months.
The committee formed by the Union commerce ministry is chaired by Rajani Ranjan Rashmi, additional secretary (plantations). The terms of reference for the committee include a detailed review of the rubber sector, its growth, demand and supply of different types of rubber—natural, synthetic and reclaimed—prices, import and export, opportunities and challenges.
Conflicting interests
The natural rubber sector in the country has been going through a crisis for the past three years with prices in the domestic market falling from about Rs 250 per kg to Rs 150 by 60 per cent.
Kerala, the largest grower of rubber has been hit the hardest. The growers have been pointing out that the main reason for the price dip is unabated imports at the instance of tyre manufacturers, on the premise that there is shortage of natural rubber in the domestic market.
While the prices were falling, the cost of cultivation was going up with input prices increasing by 40-50 per cent. Many small growers find it difficult to continue with rubber farming and have stopped tapping rubber. They have been demanding stable, sound and sustainable growth of incomes from natural rubber. On the other hand, the industries have been demanding more imports and more cuts in
import duties. The growers and the consumers of rubber, having contradictory demands, are often at loggerheads.
The committee will consider the concerns of all stakeholders, says the notification. The panel has representatives from concerned ministries, the Rubber Board, growers, processors, industry and
research bodies.