New Delhi: The central government will raise import tax on natural rubber by 5 per cent to 25 per cent from June 1, Finance Minister Arun Jaitley told lawmakers on Thursday.
The move is to ensure domestic supplies in the world’s second-biggest natural rubber consumers.
Kerala accounts for more than 90 per cent of the total rubber production in the country. The total area under rubber cultivation in the state is 5.45 lakh hectares.
Besides, some 11.50 lakh farmers, most of whom are small-holders, are engaged in cultivation of the commodity in Kerala.
India, which buys most of its natural rubber from Thailand, Malaysia, Indonesia and Vietnam, is struggling to fulfill rising demand from tyre makers.
Production of natural rubber fell 15.4 per cent in 2014/15 from a year ago.
Production of natural rubber in Kerala too has declined by more than 15 per cent during last fiscal as against the yield for the corresponding previous year as unremunerative prices kept rubber growers away from tapping.
Production of natural rubber during 2014-15 was 6,55,000 tonnes which is 15.4 per cent lower than 7,74,000 tonnes produced in 2013-14, according to the latest figures released by the Rubber Board in Kerala.
