Kerala raises concern over move to slash rubber import duty

THIRUVANANTHAPURAM: Both ruling LDF and opposition UDF in Kerala expressed concern over Centre's reported move to slash import duty on natural rubber, holding it would deal a blow to the state, which accounts for 90% of the production in the country. 

Talking to reporters here, state finance minister T M Thomas Isaac alleged the duty was being reduced from 20 per cent to 7.5% under pressure from powerful lobby of rubber industries, including Association of Tyre Manufacturers (ATMA), without bothering about "adverse consequences" it would have on the farmers in Kerala. 

A delegation of Congress-led UDF MPs met Union Commerce Minister Anand Sharma in New Delhi today seeking reversal of the decision of the Finance Ministry which was expected to be approved by the Union cabinet shortly. 

Idukki MP P T Thomas said, Sharma assured the delegation that price situation would be reviewed every fortnight and remedial measures would be taken if there was any drastic fall in domestic price. 

However, LDF Government was not willing to take such an assurance seriously arguing that past experience in matters like this did not give much hope. 

Isaac said the decision would lead to sharp crash in the price of the domestic output at a time when it was fetching around Rs 185 a kg in the Indian market. 

Though international price was less by just Rs 10 to Rs 15, reduction in import duty would still lead to largescale dumping of natural rubber into the country to the peril of the domestic growers, Isaac said. 

CPI-M state Secretary Pinarayi Vijayan said slashing of import duty when huge quantities of rubber was piling up in Kerala would lead to largescale import from countries like Thailand, Indonesia and Malaysia. 

This would be a great disservice to the domestic producers, he said in a statement. 

According to official figures, India produced about 7-8 lakh tonnes of rubber a year, of which Kerala accounted for over 90 per cent.

Read more: Kerala raises concern over move to slash rubber import duty - Thiruvananthapuram - City - The Times of India http://timesofindia.indiatimes.com/city/thiruvananthapuram/Kerala-raises-concern-over-move-to-slash-rubber-import-duty-/articleshow/6383216.cms#ixzz0xPDKndhW

(timesofindia.indiatimes.com)