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09. May 2006

INDIA: Growers' coop slams demand to ban rubber exports

Source: Daily "The Hindu Business Line", New Delhi; 9 May 2006

Kottayam , May 8
The attempt of the tyre manufacturers to ban rubber
exports should be stopped forthwith and rubber
marketing co-operative societies, rubber producers
societies and other organisations such as Infam and
farmers associations should join together to represent
against this attempt, according to Prof. K.K. Abraham,
President, Pala Rubber Marketing Co-operative Society
and a spokesman of the rubber growers.

The move by ATMA (Automotive Tyre Manufacturers
Association) was intended to curb the uptrend in
rubber prices and for this they had requested the
Union Commerce Minister to ban rubber exports. They
also approached the Rubber Board Chairman to adopt a
favourable attitude in this issue, he said.

Subsidy withdrawn

Following the pressure from the manufacturers, the
subsidy given for exports was withdrawn, port
restrictions were removed and rubber import was
allowed under OGL (Open General License).

A year ago the efforts of the manufacturers to depress
the domestic market by importing 70,000 tonnes of
rubber failed as the country could export 50,000
tonnes during the same period.

But they succeeded in importing more than 50,000
tonnes of block rubber as a result of which the block
rubber industry incurred heavy loss.

The indigenous market rules around Rs 10 below the
international market.

With the rubber prices in the country remaining below
the global levels, it is unbecoming of them to argue
against the reasonable rights of the rubber growers to
receive the prevailing market price, he said.




(Syed Rashid Ali, Karachi, Pakistan)

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