A seminar organised by the Kerala Congress (M) here to discuss ways to overcome the crisis in the natural rubber sector on account of dwindling prices has called for procuring one lakh tonnes of rubber from the internal market.
Speaking on the occasion, party chairman and Finance Minister K.M. Mani stressed the need for ending the advance licensing system which allowed manufactures to import rubber against their exports. Mr. Mani wanted the government to put in place a mechanism which would allow the manufactures to procure rubber at the same price as they pay for imported rubber.
‘‘Any difference in this price and the bench mark price should be compensated by the government,’’ he said. Mr Mani said this suggestion would be placed before the Cabinet for its consideration.
The State has made a budgetary provision of Rs.300 crore for procurement. But if necessary the government would have to raise the allocation so that at least one lakh tonnes of natural rubber could be procured from the internal market immediately. The seminar pointed out that the Central government would be able to do much in this regard and that too more effectively. The rubber societies should be entrusted with the procurement operations and steps should be taken for immediate disbursal of payments, he said.