A plantation worker drying natural rubber sheets at Malmapuzha in Palakkad. file | Photo Credit: KK Mustafa
The All India Rubber Industries Association (AIRIA) has urged the government not to impose any further restrictions on the import of rubber compounds.
AIRIA President Ramesh Kejriwal said the industry has projected an import of 1,12,500 tonnes in 2021 for making products such as “4005 compound rubber, not vulcanised, in primary forms or in plate, sheet or strip” category for conveyor belts, hoses, O rings and the like. done for profile. The current duty on this is Basic Duty 10%, IGST 18% and Surcharge 10%.
Also, the import duty on natural rubber currently stands at basic duty of 25%, additional duty of 5% and surcharge of 10%. Indian production of natural rubber does not meet the demand (consumption) of 12.38 lakh tonnes (2021-2022).
He said that the government should remove the import duty on natural rubber and should not impose any further restrictions on the import of compound rubber.
Mr Kejriwal said India does not produce rubber EPDM (Ethylene Propylene Diene Monomer) and its prices have doubled due to the pandemic, Russia-Ukraine war and fluctuating exchange rates. The government should not only encourage the production of rubber EPDM, which is a synthetic rubber, but also reduce the import duty on it for the short term.
In a memorandum sent to the central government, he said that the Indian rubber industry manufactures all types of rubber products and therefore there should be no duty concessions in trade agreements with other countries for rubber products.