Pressing for an immediate ban on rubber imports to save domestic cultivators from falling prices, Kerala Finance Minister K. M. Mani has demanded that the Centre allocate Rs.500 crore for the stabilisation fund to procure excess rubber locally.
Mr. Mani, who met Prime Minister Narendra Modi on Wednesday, sought a revision in the import duty on rubber to 25 per cent from the present 20 per cent.
“When I met the Prime Minister I said that at present there was is necessity for rubber import. Therefore, import should be banned for the time being,” Mr. Mani told reporters here.
Pointing out that rubber prices dropped drastically during the last one year almost by half, he said that rubber was being imported beyond the deficit levels.
“Rubber prices have fallen from Rs.240 a kg. last year to Rs.110 a kg., which is not at all remunerative. The main reason for the fall in rubber prices is import of rubber. If there is any deficit, we have no objection for import... Deficit is only marginal, which is 60,000 tonnes, whereas four lakh tonnes was imported last year. That import is not for covering deficit, but artificially diminishing rubber prices,” he said. The Minister said that the Centre should supplement the stabilisation fund by Rs.500 crore, for which the State government had earmarked Rs.300 crore to procure natural rubber.
“I have pleaded that the Central government should help by supplementing Rs.500 crore for the stabilisation fund. With Rs.800 crore, we can purchase more than 50,000 tonnes of rubber,” he said.
