Domestic price falls as Govt plans cut in import duty

Kottayam, Apr 13 (UNI) The price of natural rubber in the domestic market started falling sharply following the proposal to reduce the import duty on natural rubber.

The price came down to Rs 91 per kg today from Rs 93 on April 11 and Rs 94.50 on April Nine, following the Centr's plan to reduce the import duty on the rubber at a time when the international rate was ruling around Rs 10 above the domestic price.

The international rate of one kg of natural rubber was Rs 100.

The fall in domestic price would inflict a severe blow to the farmers and the state's economy, the Rubber Board and Indian Rubber Dealers Federation spokesperson said.

The Indian Rubber Dealers Federation (IRDF) President George Valy said the country's natural rubber stock was 1,62,000 tonnes and the import during 2006-07 was an all time record of 86,225 tonnes.

Under this circumstance if the import duty was reduced the impact on the domestic market would be disastrous, resulting in sharp price fall, he said.

Mr Valy said the IRDF would approach Union Commerce Minister Kamal Nath to persuade him to desist from the proposal.

He appealed to the state LDF Convenor Vaikom Viswan and Opposition Leader Oommen Chandy to mount pressure on the Union Commerce Ministry to drop the proposal.

The IRDF strongly oppose the proposal and would observe a 'rubber hartal' on April 16.

Mr Valy appealed to the rubber growers to not to tap their trees and participate in the hartal.

The natural rubber production in the country was 8.53 lakh tonnes during 2006-07. While the production growth was 6.3 per cent, the consumption growth was only 2.4 per cent. If the import duty was reduced at this time, it would adversely affect the growers.

The domestic growers would not get a price on par with international rate, the Rubber Board sources said and added that the Board always opposed the reduction of the import duty on natural rubber.

UNI