Effect of Fall in Prices of Natural Rubber

The Government is aware of the present situation about rubber prices. Price of domestically produced natural rubber is determined by the demand and  supply in the domestic market and the trends in world market including demand and supply in  major consuming countries,  synthetic rubber prices, weather  conditions, currency exchange rates of major exporters and  developments in futures markets etc.

National Bank of Agriculture and Rural Development (NABARD) notified in 2011-12  an average cost of production of natural rubber at ₹ 313000 per hectare for traditional rubber growing region (Kerala & Kanyakumari district of Tamil Nadu) and ₹ 2,30000 per hectare for non traditional region and North-East region.

Annual average price of Ribbed Smoked Sheet (RSS) 4 grade natural rubber (NR) for the last three years is shown as under:-

The Government has enhanced the Import duty on dry forms of rubber  from “20 percent or ₹ 20 per kg whichever is lower” to“20 percent or ₹ 30 per kg whichever is lower” with effect from 20 December 2013. The Government has set up an Expert Committee consisting of representatives of various stakeholders in the Rubber Sector to examine all relevant issues and recommend a National Policy on Rubber.  The Committee has the task of reviewing, inter-alia, the issues connected with production, demand, marketing, trade including imports, taxation etc. and evolve a policy aimed at protecting the interest of growers as well as the rubber industry. 

Natural Rubber is included in the negative/exclusion lists of Free Trade Agreements (FTAs) with major natural rubber producing countries and under India-ASEAN Free Trade Agreement. Partner countries under FTAs are allowed to take recourse to measures such as anti-dumping and safe guards in case of a surge in imports and injury to the domestic industry.

The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.