The Hindu : Business : Export subsidy unlikely now, says Rubber Board chief

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Saturday, Dec 10, 2005

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Export subsidy unlikely now, says Rubber Board chief

Special Correspondent

Rubberised tar for highways proposed

KOCHI: Rubber Board chairman Sajan Peter says the export subsidy for rubber, discontinued last year, is unlikely to be resumed by the Union Government.

He pointed out that the subsidy was announced as a relief to farmers and to kick-start rubber exports when the domestic rubber prices fell drastically and thousands of farmers suffered huge losses in 2001. Now that the domestic prices were favourable and the international prices were above the domestic ones, it was illogical to seek export subsidy. Moreover, since there were several other commodities in distress like tea, coffee and spices, the Government could not be expected to offer subsidies to rubber alone.

Mr. Peter, who took over as Rubber Board chairman a couple of months back, was speaking at a reception given to him at the Kerala State Rubber Cooperative Marketing Federation (Rubbermark).

He said the board was keen on boosting rubber exports. It wanted at least 10 per cent of the produce exported. Export would serve two purposes: one, it would stabilise the prices which tended to be volatile even during brief periods; and, two, it would help gradually raise the quality of produce as international market demanded higher quality standards.

It had been planned to export 40,000 tonnes this financial year, but already, four months ahead of the close of the year, 45,000 tonnes had been exported.

He also said production this year would exceed eight lakh tons, up from the projected 7,80,000 tonnes. Yet, India was a net importer of natural rubber - roughly 60,000 tonnes.

The Rubbermark president, T.H. Mustafa, said the federation had almost come out of the red. Over a year ago it had an accumulated loss of Rs.75 crores, but this was now being wiped out. The federation had diversified its activities. It was planning to set up ten consumer-oriented rubber-based products manufacturing units in the Rubberpark at Irapuram, near Perumbavoor. A balloon-making unit, set up with foreign collaboration, had started production this month. He said the Union Government had agreed to use rubberised tar for all the national highways in the country.

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