Rubber growers urge Union government to hike import duty on compound rubber to 25%
Rubber growers urged the Union government to increase the import duty on compound rubber from the present zero to five per cent rate to the maximum 25 per cent rate to save domestic rubber farmers.
The growers also urged the government to fix the base price of rubber for imports at ₹258 per k.g. They put forth these demands at a conference organised by Karnataka State Rubber Belegarara Hitarakshana Vedike — in association with cooperative societies dealing with rubber in the State — at Sri Krishnanugraha Sabha Bhavana in Ujire on November 29.
They demanded that both the Union and State governments treat natural rubber as an agricultural product and bring it under the Horticulture Department by taking it out of the Commerce Department.
The growers urged the State government to fix ₹258 per k.g. as the minimum support price (MSP) for natural rubber to prevent rubber growers from cutting their trees owing to the crash in prices for the past 15 years.
The farmers demanded that the State government bring natural rubber under a weather-based insurance scheme and establish a price stabilisation fund for natural rubber.
Zero per cent import duty
Speaking at the conference, senior economist Vigneshwar Varmudi said that about 27 per cent of compound rubber is imported to the country at zero per cent import duty, mainly from Association of Southeast Asian Nations (ASEAN) and SAARC Preferential Trading Arrangement (SAPTA) countries. This is the main reason for the prices of natural rubber falling and not maintaining stability in the domestic market, he explained.
Mr. Varmudi said that many growers in the State have begun cutting rubber trees owing to the price crash. They are replacing rubber plantations with arecanut plantations and are using the same land for construction activities.
The senior economist said that India has imported about five lakh tonnes to six lakh tonnes of rubber in the past five years. When imports increase, the domestic market is affected and it results in price instability of natural rubber in the domestic market.
The country imported 3.05 lakh tonnes of natural rubber and 1.08 lakh tonnes of compound rubber between April and November during 2024-25, he said, adding that the import was mainly from ASEAN countries. The import of natural rubber and compound rubber from these countries during 2023-24 stood at 3.82 lakh tonnes and 1.14 lakh tonnes, respectively, he said.
“India imported 1.13 lakh tonnes of compound rubber without any import duty during 2023-24 and the duty free compound rubber imported during April-November of 2024-25 stood at 1.07 lakh tonnes,” Mr. Varmudi added.
Quoting the statistics of the Indian Rubber Board, the senior economist said that the country produced 8.75 lakh tonnes of natural rubber during 2024-25 while domestic consumption stood at 14.25 lakh tonnes. “Between the production and demand, there is a gap of about 5.50 lakh tonnes. The demand for rubber in the country is growing,” Mr. Varmudi noted, stressing on the need to have control over the import of rubber.
Captain Brijesh Chowta, MP, also spoke at the conference.
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