THE INDIAN Commerce Department urges the Finance Ministry to expedite on its recommendation for import duty hike on rubber to aid domestic farmers against falling prices.
Rubber prices dropped from Rs 230 a kg in the previous year to about Rs 160 a kg this year.
Increase of Rs 34/kg (from Rs 20/kg) import duty on rubber has been suggested, based on the average price prevailing in the past three years, but without changing the 20% ad valorem duty.
Currently, importers can pay either 20% import duty on the value of rubber or Rs 20 per kg of imports, whichever is lower.
“We had given our proposal for a re-calculation of import duty to the Revenue Department two months ago, after rubber farmers approached us with complaints of a fall in prices. We hope the Finance Ministry will respond soon,” the official said.
In March, rubber farmers from Southern States had urged Commerce Minister Anand Sharma to pull up import duties to bar a possible influx of cheap rubber from neighbouring countries, and consequently further push down prices. Congress MPs from Kerala have already met Sharma to press for an increase in import duty on rubber to protect domestic farmers. Kerala accounts for about 90% of the rubber produced in India.
The plea for the import hike has not been addressed by the Finance Ministry as yet.