Rising rubber imports worry planters 

Business


Higher imports of compounded rubber in 2021-2022 has become a matter of concern for planters as they are impacting prices, according to UPASI.

According to data available with United Planters’ Association of Southern India (UPASI), 1.14 lakh tonnes of compounded rubber was imported in 2021-2022, which was 0.19 lakh tonnes higher than the previous year. Import of natural rubber was 5.82 lakh tonnes in 2018-2019 and crossed the five-lakh-tonne mark again in 2021-22 to touch 5.46 lakh tonnes.

In a memorandum to the Ministry of Commerce, the UPASI pointed out that import of natural rubber attracted 25% duty while it was only 10% for compounded rubber. Compound forms of rubber contained almost 90% natural rubber, it said.

Higher imports are affecting the domestic growers by impacting the price they realise for rubber. 

“We have requested (the government) that the present situation calls for restricting natural rubber imports for a minimum period of two years, by changing the policy condition from free to restricted, as was done recently for import of tyres,” the Association said.

India produced 7.75 lakh tonnes of natural rubber in 2021-2022 compared with 7.15 lakh tonnes the previous year and consumed 12.38 lakh tonnes, which was 12.9 % higher compared with 2020-2021. Consumption of synthetic rubber was 7.23 lakh tonnes in 2021 which was higher than the 6.18 lakh tonnes consumed in 2020.



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