Sunday, March 4, 2001
fesub.gif (4328 bytes)
Full Story
fe.gif (834 bytes)
India's first e-business paper
flnews.gif (5153 bytes)
Search FE
-
Download
BSE Quotes
NSE Quotes
-
 

Budget leaves rubber sector in Kerala high and dry 

Ajayan  
Kochi: The rubber sector is in for great trouble. While the Union Budget has added to the woes of rubber farmers in Kerala by totally ignoring them, the lifting of quantitative restrictions (QRs) on 1,429 items - which is just 30 days away - should throw them to a new competitive world where they are likely to be petered out.

From politicians to planters, from traders to small farmers, the chorus is that there was selective amnesia at the Centre when it came to rubber. Rubber has been on the raw materials list of the World Trade Organisation.

Though there had been several requests to the Centre to take up this issue with the WTO and treat rubber as an agricultural commodity, there was a general feeling among rubber-growers and traders that this was a near-impossible task.

However, growers feel that something would have been done to resucitate the rubber sector in the Budget. But, instead, the situation has worsened with the 10-per cent import surcharge being lifted and rubber receiving no mention in the Budget except for the 4 per cent duty on rubberised mattresses. Rubber traders, growers and farmers in Kerala are up in arms against the `discrimination' shown by the Centre. They say that presently, there is just a 25-per cent import duty on natural rubber, while it is 35 per cent on latex. Going by the WTO norms these duties can be raised to 50 per cent.

The Centre, however, did not feel it important to give the rubber sector a helping hand, they charge. According to chairman of the Association of Planters of Kerala GJ Ancheril, the Centre could have used the WTO rules and helped the rubber farmers by raising the duty 50 per cent as allowed by the WTO.

From April 1, where 10 varieties of rubber which include items like slippers can be imported with no restrictions, the country will be flooded with rubber and its products coming from Malaysia and Indonesia, leaving the growers in Kerala in jeopardy and crippling of state's economy which is already in a shambles.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

- Lead Stories | Corporate | Infrastructure | Commodities | Economy/Finance | BSE Today | NSE/ Markets | Strategy | Convergence | After Hours top.gif (150 bytes)Top
flame.jpg (1068 bytes) © Copyright 2001: Indian Express Newspaper(Bombay) Ltd. All rights reserved throughout the world.
This entire edition is compiled in Mumbai by The Indian Express Online Media Limited, a division of
The Indian Express Group of Newspapers. Managed by The Indian Express Online Media Limited and hosted by CerfNet.