Kerala - Kochi   

Rubber workers facing an uncertain future

KOCHI: At least 20,000 workers in rubber-based industries across the State are face an uncertain future with unprecedented rise in natural rubber price threatening the existence of around 800 industrial units.

There are around 800 rubber-based industries, mostly tread rubber, registered with the Rubber Board and hundreds of other small units operate without registration. Each of these registered units would employ between 20 and 25 people, said a spokesman for Kerala Sate Small Industries Association (KSSIA) here on Tuesday.

Natural rubber price had crossed the Rs.200-mark in the domestic market and international price did not provide incentive for import, said George P. Thomas, vice-president of KSSIA.

Rubber industries were among the traditional industries in the State that had taken the brunt of the spiralling price of raw materials. Frequent hike in petrol price had just added to the woes of the small units.

The small rubber-based units had no option but to wind up in the face of continued price rise, said Damodar Avanoor, who has been active in taking up the cause of small-scale units in the State.

He said that around 15 rubber-based units were facing closure in Thrissur district alone and pointed out that Small and Medium Enterprises (SMEs) had their hands tied because any hike in the price of the products would meet with resistance from buyers.

Josh Lawrence, who runs a foot-wear unit in Changanassery, said he had drastically cut production owing to the rising price of natural rubber. He employs around 40 people and the usually busy Christmas season was marred by the price spiral as production dipped by around 70 per cent.

According to him, the governments must take a more sympathetic view of the situation of the SMEs, which can be allowed to import synthetic rubber at concessional rates. The government could at least allow concessional import of those products that were not made in India, he said.

Director of the Kochi-based Institute of Small Industries and Development (ISED) P.M. Mathew said small industries were generally the worst-affected by an inflationary situation.

According to Mr. Mathew, small industries were unable to stockpile raw materials. They met short-term commitments and were not in a position to hold inventory. Inflationary situation only benefitted traders, who speculated on the future price of materials they were able to stockpile. Thus, the small industries also face the brunt of speculative activities by the traders, he said.

Besides, he said, small-scale units make products that did not have a long manufacturing cycle and thus they were unable to absorb the shock of a price spiral.

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