Question : Production and Import of Natural Rubber

(a) the total production of natural rubber in the country during each of the last three years and the current year;

(b) the total quantity of rubber imported into the country during the said period along with the steps taken to check its import from abroad;

(c) whether the price of natural rubber has declined thereby affecting the domestic rubber producers/growers;

(d) if so, the details thereof along with the measures taken by the Government to help them; and

(e) the total amount released so far for rubber growers from price stabilization fund?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)
(SMT. NIRMALA SITHARAMAN)


(a) The production of Natural Rubber(NR) in the country during the last three years and current year is as under:
Year Production (quantity in tonnes)
2013-14 774000
2014-15 645000
2015-16 562000
2016-17(April-May) 85000

(b) The import of Natural Rubber (NR) in the country during the last three years and current year is as under:
Year Import of NR (quantity in tonnes)
2013-14 360263
2014-15 442130
2015-16 458374
2016-17(April-May) 69995

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.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.

(c) & (d) Price of benchmark RSS 4 grade NR in the domestic market which averaged Rs. 166.02 and Rs. 132.57 per kg. in 2013-14 and 2014-15 respectively, averaged Rs. 113.06 per kg. during 2015-16. The average monthly price of the grade was Rs. 133.75 per kg. in June, 2016.

In addition to measures taken to regulate import of NR, 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 to meet their share of insurance premium.

(e) Total amount released for rubber growers from Price Stablisation Fund was Rs. 27.41 lakh.
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