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Rubber Growers Fight Import Duty Cuts
11 May
Summary
- 13.2 lakh growers' livelihoods at risk from duty changes.
- Domestic rubber prices lag international rates despite costs.
- Compound rubber imports from ASEAN surge, affecting local markets.
The United Planters' Association of Southern India (UPASI) has strongly advised the central government against altering the existing import duty structure for natural rubber. UPASI president Ajoy Thipaiah highlighted that such changes could jeopardize the livelihoods of approximately 13.2 lakh individuals dependent on the sector.
Thipaiah noted that while domestic natural rubber prices have seen a modest rise recently due to global and local production issues, Indian prices have generally trailed international prices over the past two years. Significant increases in input costs, such as fertilizers and labor, have further diminished grower profits.
The association is particularly concerned about the surge in compound rubber imports, now comprising nearly 40% of total rubber imports, largely from ASEAN countries duty-free. UPASI contends that demands for reduced import duties are unjustified and could harm domestic production due to the sector's long gestation periods and slow supply response.
The natural rubber plantation sector is a significant economic contributor, supporting rural employment and downstream industries. With about 9.4 lakh hectares under cultivation, India's production potential is around 9 lakh tonnes, with similar production estimated for 2025-26.
