Rubber Merchants are looking for MSP for Natural Rubber

The Indian Rubber Dealers Federation has asked for measures in the new Rubber (Promotion & Development) Bill 2022 to provide a minimum support price (MSP) for natural rubber, which is a recurring demand among growers.

The federation's president, George Valy, said that a task team on the rubber industry had suggested to the Ministry of Agriculture in 2018 that natural rubber be included in the MSP system like other industrial raw materials like cotton and jute.

The MSP scheme currently covers 22 commodities, while other price support schemes cover Toria, sugarcane, and de-husked coconut. Therefore, 25 commodities are included in the MSP scheme and the prime responsibility of supporting the natural rubber sector rests with the government, he added.

Natural Rubber as Agriculture Product

Given the recurrent demand from stakeholders such as growers and dealers, the federation also requested that the government include natural rubber as an agricultural product in the new Bill. Natural rubber's identity as an agricultural commodity has been questioned in court disputes involving the SARFAESI Act.

As a result, the new legislation might be used to show that natural rubber, as it is obtained from plantations and in its main processed forms, is an agricultural commodity.

The federation encouraged the government to include a new provision in the bill dealing with natural rubber's classification as an agricultural product.

Rubber Imports

The federation stated that imports of rubber and rubber compounds should be brought under the jurisdiction of the Rubber Board for the granting of no-objection certificates (NOC) and clearance from Indian ports.

This will also help to ensure that importers do not engage in any sort of duty evasion in order to avoid the 25% import charge on natural rubber by incorrectly categorizing imports under an HSN code with a lower duty than natural rubber.

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