KOTTAYAM: Aimed at boosting the domestic price of natural rubber, the Rubber Board has announced a new incentive scheme for the export of sheet rubber. Under this scheme, exporters of sheet rubber will get `5 per kg as an incentive. This initiative will be in effect from March 15 to June 30. The announcement was made during a meeting of exporters held at the Board’s headquarters on Friday.
The meeting was called in response to growing demands from farmers for market intervention, as domestic rubber prices have remained stagnant despite a significant increase in international prices. To further support exporters, the Board has established an Export Promotion Cell to address various issues and provide assistance.
Eligible exporters must hold a valid Registration-Membership Certificate issued by the Board and be registered to use the Indian Natural Rubber Logo to qualify for the incentive scheme. The Board will reimburse exporters upon submission of the required documentation, which will also cover branding costs.
However, some farmers have expressed dissatisfaction with the Rs 5 export incentive. Babu Joseph, the general secretary of the National Consortium of Rubber Producers’ Societies, stated that offering a subsidy of only Rs 5 will not significantly increase exports. He suggested that true market intervention would involve Central and state governments procuring rubber at a higher price for export.
“As per conditions for export incentives, an exporter will get a subsidy of up to 40 tonnes only, which is up to Rs 2,00,000. Moreover, only 50 exporters will get this benefit. To align domestic prices with international rates, the Central and state governments should procure sheet rubber directly from the market at higher prices. Only then, will the domestic price of rubber truly reflect global trends,” he said.
Since January 2024, the international price of sheet rubber has exceeded Indian prices.
Despite this price difference, exporters are facing challenges in exporting due to lower price quotes from countries like Vietnam. Globally, sheet rubber consumption only accounts for about 10 percent, with major consumers being China, Malaysia, and Sri Lanka. These nations have long-term contracts for procuring sheet rubber, which has been a barrier for Indian exports.
In recent weeks, Indian prices have also increased due to the exporting community’s eagerness to secure export orders and monitor international market trends.
The Rubber Board led by chairman Dr Sawar Dhanania, executive director M Vasanthagesan, and member N Hari, engaged in discussions to address these challenges.
