GOVERNMENT OF INDIA

MINISTRY OF COMMERCE & INDUSTRY

(DEPARTMENT OF COMMERCE)

RAJYA SABHA

UNSTARRED QUESTION NO. 1465

TO BE ANSWERED ON 15TH MARCH,2017

INCREASE IN IMPORT OF NATURAL RUBBER

  1. SHRI RAJEEV CHANDRASEKHAR:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

(a)Whether there is a sharp rise in the import of natural rubber during the last three years and if so, the details thereof and reasons therefor;

(b)Whether Government has taken note of the worsening situation of the rubber cultivators on account of excessive import leading to drastic fall in the price of rubber;

(c)If so, the details thereof and steps taken by Government to address the issue; and

(d)If not, the reasons therefor?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

(INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

***

(a)There is an increase in the import of natural rubber (NR) into the country during the last three years as per details below:

YearImport (Tonne)
2013-14360,263
2014-15442,130
2015-16458,374

The increase in import of NR into the country can be primarily attributed to the gap between production and consumption of NR in the country and lower prices of block rubber in international markets as compared to the sheet rubber in domestic market.

(b)to(d)Fall in price of the Natural Rubber (NR) is attributable, inter alia, to trends in economic growth, production in major NR producing countries and demand in major consuming countries. Domestic NR price generally follow the trends in the International market. Prices of Natural Rubber (NR) has shown a decreasing trend during the last three years and a slight increases is seen in the current year in India and International markets. The Government has increased the duty on import of dry rubber form “20% or Rs. 30 per kg whichever is lower” to “25% or Rs. 30 per kg. whichever is lower” w.e.f. 30.4.2015 in order to increase the cost of imported rubber and create demand for locally produced rubber. The Government has also reduce the period of utilization of imported dry rubber under advance licensing scheme from 18 months to 6 months. Director General of Foreign Trade (DGFT) has imposed port restriction on the import of natural rubber by restricting the port of entry to Chennai and Nhava Sheva (Jawaharlal Nehru Port) since 20th January,2016.

*********