Union Government allowed Imports of 40000 tonnes of Natural Rubber at Concessional Duty

The Union government in July 2011 allowed imports of 40,000 tonnes of natural rubber at a concessional duty of 7.5 per cent for the current fiscal 2011-12. This is similar to the one allowed last fiscal.

Since 1 April 2011, the Customs duty on natural rubber has been fixed at 20 per cent or Rs 20 a kg, whichever is lower.

The move to allow imports at a lower duty follows demand from the user industry, particularly tyre manufacturers, to allow import of two lakh tonnes duty-free. The Commerce Ministry had recommended allowing imports of one lakh tonnes duty-free. Growers, on the other hand, are totally opposed to imports.

The import will meet consumers' need for just 15 days, going by the consumption of 80500 tonnes in June.

According to former President of the United Planters' Association of Southern India, J K Thomas, the decision to allow imports at concessional duty is oppressive. He opined that the government decision was taken at the most inopportune moment as peak production season is lurking.

According to traders, inferior quality sheet rubber is available at Rs 208-201 a kg. The high price for inferior quality rubber makes production unviable for small manufacturers.