"STC will make available all forms of rubber to Indian importers, who complain of not getting required grade of rubber following the ban," said Rubber Board chairman KJ Mathew. Meanwhile, the commerce ministry has authorised public sector STC to procure all forms of rubber as part of its market intervention operations to stabilise sagging prices of the commodity.

The order, issued last week, follows complaints from tyre makers and rubber industry's associations that after the ban on natural rubber imports they were finding it hard to source the type of rubber required for production.

KJ Mathew, who was here in connection with the Association of Natural Rubber Producing Countries (ANRPC) meet, said till now STC was making available only RSS IV gradesheets to domestic rubber industries against the surrender of advance license.

But from now onwards, it would sell higher grades like RSS one, technically specified or crumb rubber (TSR), centrifuged latex and also other grades of sheet rubber, he said. Bharat Bhusan, director, plantations in commerce ministry, said these rubber would be sold at international prices to domestic rubber industries.

This would mean that domestic industries would be offered all types of rubber at a low rate as compared to global prices for rubber -- Indian prices are higher.

The decision to sell all types of rubber at global prices was taken after domestic consumer industries complained that they were unable to get other grades of rubber.

The consuming industries said as long as imports of rubber was permitted under advance license, they were able to get the required grade of rubber. Rubber imports are allowed only under advance (import) license and government had banned it in an effort to prop up the commodity's priceswhen it hit a seven-year low in December.

Bhushan said the STC procurement would be at market rate and part of the 20,000 tonnes ordered by government in May 1998.

Government had then said RSS IV grade could be purchased at market rate not exceeding Rs 34 a kg. Though stc stands to lose by selling the procured rubber at a lower prices, government will bear the loss.

While deciding to procure rubber from the domestic market, government also announced that it would either be exported or sold against surrender of advance license. Bhushan also said STC's procurement would be on the basis of confirmed purchase orders and it would not hold unsold stocks. Mathew said imports averaged around 25,000 tonnes annually during the last couple of years and of this RSS IV made up only 30 per cent.

It was for this reason that STC had been asked to procure other forms of rubber, he said. Asked about actual procurement of rubber by the corporation of the 20,000 tonnes ordered by government, the Rubber Board chairmansaid so far 15,000 tonnes had been procured.

"There were some difficulty in purchases at market prices. Suppliers do not find it attractive to sell at market prices always," he said, adding that procurement was now progressing fast.

Mathew said that the Rubber Board would try to reduce excess supply to balance demand-supply situation and one of the ways was procurement by STC.He said the Kerala government had also undertaken procurement through two cooperatives Rubco and Rubbermark.

"Kerala government has decided to procure 50,000 tonnes through Rubco and Rubbermark. Rubco has already procured 10,000 tonnes," he said.