The central government of India is mulling the repeal of the Rubber Act of 1947, which is often referred to by the country’s rubber farmers as “the Constitution”.The Act has been one of the key elements regulating the rubber industry in the country.
It has been said that a draft plan in this regard has been readied and will be presented at the next cabinet meeting.
The scrapping of Rubber Act will take away the statutory board status from the Rubber Board. The Act currently gives the Board the authority to issue licence to traders and large-scale manufacturers, advice the central government on export and import, and regulate the price of rubber.
As per the various international agreements, the maximum import duty of rubber is 25% at present. Once the Rubber Act is scrapped, the central government can decide the duty. Farmers fear such a move will better serve the interests of big corporates.
The Rubber Board’s recent move to close down some of the regional offices is seen as a prelude to the scrapping of the Act.
Kerala, being one of the largest producers of natural rubber in the country, will be the most hit by the repeal of the Act. Rubber growers, mostly small farmers, in the state will be facing a bleak future with such a move.