AIRIA urged to Crub Import Duty hike on Natural Rubber
All-India Rubber Industries’ Association (AIRIA) which constituted 5,500 rubber MSMEs has asked the central government to stop import duty hike in natural rubber (NR) till the report of an expert group on the proposed National Rubber Policy is out.
In a letter to the government, Airia president Mohinder Gupta said the government should wait for the national rubber policy and take a concerted decision on a major issue like increasing duties.
The government had set up an expert group in June 2014. It has had a series of meetings with both natural rubber producers and consumers. The final report of is to be released soon.
India already levies one of the highest duties on import of natural rubber at 20 per cent while the import duty on finished rubber goods is 10 per cent or even lower, said AIRIA.
The sector also said that the rubber farmers are feeling the heat of drop in prices.
Earlier this year, the government reduced the export obligation period to six months from 18 months wherever natural rubber is allowed as an input under the Advance Authorisation scheme.
Rubber MSMEs are grappling with the complexities associated with the reduction in exemption period. Any further hike in import duties would aggravate the situation, said Gupta.