The commerce ministry has initiated a process to formulate a national rubber policy and to draw up a draft, it is setting up a committee of experts.
The decision follows concerns expressed by rubber-consuming industries over a decline in both rubber productivity and availability of various forms of the material, and by growers over increased risk to production due to climatic factors and price shocks caused by imports.
The committee will examine issues related to production, development and export of rubber and related products and make recommendations for a broad-based policy relating to natural rubber, synthetic rubber and reclaimed rubber, the ministry said in a news release.
It will be chaired by the additional secretary of plantations at the Department of Commerce, and have members from the government, Rubber Board, industry, growers, processors and research bodies.
The Rubber Board will provide support services to the panel that has to submit its report, including the draft of the policy, in six months.
Dr Raghupati Singhania, vice-chairman of the Automotive Tyre Manufacturers’ Association, said he hoped the proposed policy to address the issues of all stakeholders, and help the nation tap the potential the rubber industry offers.
“Rubber and tyre manufacturing is shifting to Asia. India enjoys a unique position both in terms of verdant natural rubber plantations and rubber and tyre manufacturing, which has stood the test of time,” he said. “Unfortunately India’s potential in the sector has not been fully harnessed.”
Growers and consumers of rubber have often been at loggerheads, with one group demanding steps likes curbs on imports to support prices and the other seeking more imports to cool local prices that often are higher than international rates. The new policy is expected to address such issues.
“In the absence of a policy framework, many a time different stakeholders found themselves unnecessarily pitted against each other harming the entire value chain,” said Niraj Thakkar, president of the All India Rubber Industries Association. “The terms of reference of the committee are quite extensive and we are hopeful of a well-considered policy.”