Rubber industry demands separate body to promote exports

Himanshu Vatsa | The Dollar Business

Rubber industry has asked the government to form a separate body to promote exports of rubber products from India. The All India Rubber Industries Association (AIRIA) has submitted its demand to the Commerce Ministry, seeking a dedicated export promotion council to encourage manufacturing of rubber products and their overseas shipment to tap the international market. At present, the export of rubber products comes under the Chemicals and Allied Products export promotion council (Capexil). “We have sent a letter to the Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and demanded that there should be a separate export promotion council for rubber industry. The matter is still under consideration,” Sanjay Sanghvi, Secretary General of AIRIA, told The Dollar Business. India’s current export market share in the world is 1.48 %. According to AIRIA, the country’s ranking as rubber product exporters is expected to move up from current 19^th to 5^th in the next five-seven years. But there is an “immediate need to focus on the massive unexplored potentialwhich can be mandated with immediate effect as exports are almost stagnation for the last three years,” the industry body said in its letter to DIPP. AIRIA said that it has already got approval from Capexil for the formation of a separate export promotion council. “We also feel that there is a need to create brand India for rubber products manufactured in India. It is worthwhile mentioning that the Indian Rubber industry has gained maturity over the years and can compete with the best in the global markets, provided it receives due attention, focus, right policy frame work, initiatives and the finished products are systematically channelized to the right markets,” the letter read. A parliamentary standing committee report released last month had also suggested the government to take measures to protect the Indian rubber goods industry. Taking note of the challenges faced by the rubber goods manufacturers due to increasing imports of cheap products, the panel had asked for an overhaul of various international free trade agreements. The panel had underlined the need for an outlay of Rs.500 crore for technology up-gradation of rubber goods industry and suggested the setting up of rubber product clusters with tax incentives and encouraging farmers to take up rubber plantation. Around 5,000 small and medium scale units are invloved in manufacturing of more than 35,000 rubber products across India. During the last financial year, the country's export of rubber products was estimated to be around Rs.17,500 crore.  

September 2, 2015 | 1:18pm IST.