The Hindu : Rubber exporters form union to press for export subsidy

Online edition of India's National Newspaper
Sunday, Feb 29, 2004

Kerala

Kerala

Rubber exporters form union to press for export subsidy

By Our Special Correspondent

KOCHI, FEB. 28. Rubber exporters have formed an association to highlight the need for continuing export subsidy by the Union Government.

The All India Natural Rubber Exporters Association was formed to sustain the presence of exporters in the international market and to ensure fair price to the growers and easy availability of quality rubber to manufacturers here, the association president, Renjit Kuruvilla, said.

Talking to reporters here, Mr. Kuruvilla said that exporters had been able to export about 52,000 tonnes of natural rubber valued at about Rs. 250 crores last year, fifty per cent of which was lapped up by China. He said the association would implore the Centre to continue the export subsidy scheme and request the Rubber Board to take measures to increase the yield from the present average of 1,500 kg per hectare.

He said that the export subsidy scheme was in conformity with the World Trade Organisation stipulations and all over the world such incentives for export existed. He said, in response to a question, that the export this year would be to the tune of 65,000 to 70,000 tonnes.

The export could pick up further if some changes were made in the packaging. At present, rubber blocks and sheets were packed in quantities of 50 kilos whereas the international norm was 113-kilo bundles. The exporters of rubber were not enjoying incentives like Duty Entitlement Pass Book benefits or excise duty exemption like the exporters of other commodities. If the export momentum was not kept up, the domestic price would fall because of surplus, he said.

According to Mr. Kuruvilla, the present export subsidy of Rs. 3.50 per kg is to meet the transportation and handling costs incurred by the exporters. The exported rubber which used to suffer a discount of 25 per cent in the international markets could claim a premium if there was a steady stream of quality rubber. Out of the 700,000 tonnes of total rubber production, only five to seven per cent was exported is at present.

Eighty per cent of the rubber was grown by small holders and about two million people in the State were directly dependent on rubber. Hence the State Government and the Rubber Board should give more encouragement to the farmers to grow rubber and create an atmosphere conducive to the manufacturers to thrive, he said.

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