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Monday, November 9, 1998

Board plans to make rubber competitive 

P Vinod Kumar  
November 8: The Rubber Board has chalked out an ambitious plan to groom the plantation and rubber manufacturing sector to take on the challenges of the global market. The new strategy involves a thorough recasting of the production and processing technologies, which now are heavily biased in favour of domestic market.

In a paper prepared by the Board chairman KJ Mathew on `Preparing plantation and manufacturing sector for the world market', which was presented in an IBC Inc-sponsored conference on Asian Rubber Market - 1998 in Singapore in the first week of November, the Board calls for a paradigm shift in the focus of NR sector from inward orientation to outside orientation. The Board has also jotted separate strategies for plantation and manufacturing sectors to make them globally competitive.

According to the Board's view a major factor that kills the prospects of Indian NR in the global market was the high-cost factor. To overcome this, the Board has suggested a number of cost-cutting measuresincluding increasing productivity and adopting new technologies.

Another factor that chalks Indian NR export prospects is the obsolete processing methods now being followed by a large section of growers.

This, according to the Board's view could be surmounted by adopting new technology and value addition. It is said that a factor that affects the quality of Indian NR is the practice of drying the sheets in sun. The sun-dried sheets are considered as inferior to those being dried in the smoke houses.

The Board has been pushing the concept of new processing technology to the growers by providing financial assistance to the 150 odd Rubber Producing Societies (RPS). Under the plan, the Board offers financial assistance to RPS, which consists of 50-60 growers, for setting up common facilities like smoke houses, in which the ribbed sheets could be dried in smoke. It goes without saying that the recant attempt by the centre to export at least 30,000 tonnes of NR procured by the State Trading Corporation hasrun into rough weather as there was no takers for the commodity.

Finally, the government has to shift its stand and sell a portion of the rubber procured by STC to the domestic industry under the Advance Licencing Scheme. This has forced the government to have a fresh look at the export market.

The Board has also called for a through change in the focus of manufacturing sector, from the present inward looking to one of producing goods for the global market.

It may be recalled that a sizable chunk of the Indian tyre exports consists of `cross-ply tyres' which is being phased out in the EEC and US market by radial tyres.

The Rubber Board has recently made a paradigm shift and decided to promote the use and production of Special Purpose Natural Rubber (SPNR) for creating better value addition and price realisation for the growers.

Following this, the Marketing Committee of the Board has earmarked Rs 10 lakh to promote the production and use of SPNR in its last meeting.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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