'Government must regulate import of natural rubber to protect domestic industry’
The government should regulate the import of natural rubber during peak season through designated ports and must ensure quality check to protect the domestic industry, a parliamentary panel has said. “Imports should be need based and the quantum of imports may be determined on the basis of the gap between the domestic production and consumption,” said the parliamentary standing committee in its report presented in the parliament on Thursday. Expressing concern over steep fall in the price of natural rubber, the panel asked for an immediate intervention from the government. “Unless the necessary measures are taken, there is a possibility of growers shifting to other crops,” it said. The panel also took note of the challenges faced by the rubber goods industry, especially the tyre manufacturing sector, and asked for an overhaul of various international free trade agreements to insulate Indian tyre makers from the impact of cheap imports. “Review the Free Trade Agreements like ASEAN Foreign Trade Agreement, Indo Sri Lanka Trade Agreement, Indo-Singapore Trade Agreement, Asia Pacific Trade Agreement, India Malaysia Agreement, SAFTA Agreement so as to stop India become dumping ground for cheap tyres at the cost of local manufacturer,” the report said. The parliamentary panel also suggested an outlay of Rs.500 crore for technology up-gradation of non-tyre rubber goods industry. Other suggestions included setting up of more rubber product clusters with tax incentives, resuming operation of the Dunlop Tyre Plant and encourage farmers to take up rubber plantation. “The two non-operational tyre plants, viz, Dunlop and Tyre Corporation of India Ltd., in case they cannot be revived, may be converted in to centres of excellence for rubber skill development,” the panel said. To enhance rubber production in the country, the panel also asked the government to revisit the agricultural income tax structure on rubber plantation and support the Rubber Board in promoting rubber cultivation in left wing extremism affected states such as Andhra Pradesh, Chhattisgarh, Jharkhand, Odisha and West Bengal.
August 14, 2015 | 1:05pm IST.
to success.