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Government Official States No Plans To Reduce Import Duty On Rubber
The country has more than 1.3 million rubber growers, with Kerala being a significant contributor to production, which totaled 8.39 lakh tonnes in the 2022-23 fiscal year.
New Delhi: On Monday, a senior official stated that the government currently has no plans to reduce import duties on rubber because the gap between domestic and international prices is being upheld.
"We have a differential already maintained for the imports that we are getting vis-a-vis the local production.
"If you see the local price vis-a-vis international price...So there has been a differential maintained on account of that import duty... So I do not think there is any rethink on reducing import duties as of now," Additional Secretary in the commerce ministry Amardeep Singh Bhatia told PTI reporters here. (Also Read: IREDA Inks Pact With PNB For Financing Green Energy Projects)
He responded to inquiries regarding the request from the domestic user industry to lower duties, as well as the opposition from local producers against any reduction in duties. Tyre manufacturers are significant consumers of this commodity. (Also Read: PNB Housing Finance Unveils New Fixed Deposit Interest Rates For Senior Citizens; Get Interest Rates Up to 8.30%)
The country has more than 1.3 million rubber growers, with Kerala being a significant contributor to production, which totaled 8.39 lakh tonnes in the 2022-23 fiscal year. Consumption during that period reached 13.5 lakh tonnes.
Imports from countries like Vietnam, Malaysia, and other Southeast Asian nations fill the gap. To manage the import of natural rubber, the government raised the duty on dry rubber imports to 25 percent or Rs 30 per kilogram, whichever is lower, effective April 30, 2015.
Since January 2015, the government has shortened the period for utilizing imported dry rubber under the advance licensing scheme from 18 months to 6 months.Furthermore, the port entry for importing natural rubber has been limited to Chennai and Nhava Sheva (Jawaharlal Nehru Port) since January 2016.
Moreover, in the Union Budget for the fiscal year 2023-24, the customs duty rate on compound rubber was raised from 10 percent to 25 percent or Rs 30 per kilogram, whichever is lower, aligning it with the rate for natural rubber. This adjustment aimed to prevent the evasion of duties. (With PTI Inputs)