GOVERNMENT OF INDIA

MINISTRY OF  COMMERCE AND INDUSTRY

RAJYA SABHA

QUESTION NO  1944

ANSWERED ON  11.05.2016

Non utilization of domestic stock due to excess import of natural rubber

1944 Shri Rajeev Chandrasekhar

Will the Minister of COMMERCE AND INDUSTRY  be pleased to satate :-

(a) the year-wise quantum of natural rubber imported and produced in the last three years;

(b) whether there has been excess import of natural rubber leading to non-utilization of domestic stock;

(c) whether Government has studied the ramifications of the Indo-ASEAN agreement on the prices of plantation crops, especially rubber, on the rubber plantation farmers in Kerala;

(d) if so, the details thereof; and

(e) the steps taken by Government to address the falling prices of natural rubber, including compensating the rubber farmers of Kerala for the losses accrued due to drop in rubber prices?
                                                                                             

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY(INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

(a) : Year-wise statistics of Natural Rubber (NR) imported and produced in the last three years are given as under:-

NR import and Production (Tonne)
Year Import Production
2013-14 360263 774000
2014-15 442130 645000
2015-16 (provisional) 454303 563000

(b): Provisional estimates of NR production and consumption during 2015-16 indicated a consumption-production balance of 424,540 tonnes. Import of NR during 2015-16 was 454,303 tonnes. However, the stock of NR declined from 252,000 tonne as at the end of March 2015 to 224,000 tonnes at the end of March 2016. The consumption-production balance and stock of NR do not indicate considerable excess import of NR leading to non-utilisation of stock.

(c) & (d): Tariff lines pertaining to NR are included in the Exclusion List of Indo-ASEAN Free Trade Agreement. Hence there is no import of NR with tariff concession under Indo-ASEAN Free Trade Agreement.
(e): The Government has increased the duty on import of dry rubber from “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 reduced the period of utilization of imported dry rubber under advance licensing scheme from 18 months to 6 months. RSS (Ribbed Smoked Sheet) and TSR (Technically Specified Rubber) has been added in Merchandise Export from India Scheme (MEIS) which make them eligible for an incentive at the rate of two per cent of export values.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 NhavaSheva(Jawaharlal Nehru Port) since 20th January, 2016.
The Government has also devised market-linked Revenue Insurance Scheme for Plantation Crops (RISPC) for protecting the farmers of plantation crops, including rubber plantations, against losses arising from fluctuations in yield as well as prices. The scheme has been shared with the State Governments including Kerala to meet their share of insurance premium.

*****