The Hindu Business Line : ATMA wants port curbs on rubber to go

CONCERNED over the adverse impact of the current trend of depletion in the "low level" of rubber stocks in the country, the Rs 9,700 crore domestic tyre industry has stepped up pressure on the Government to lift the port restrictions that were placed in December 2001 on imports of natural rubber.

With the next edition of the Export-Import policy round the corner, the domestic industry is hoping that the Government would have a re-look at some of the import restrictions that were imposed when the prices of natural rubber were depressed and domestic natural rubber growers required supported.

" There has been a sea change in the position now. We hope the Government would act on at least two issues. One relates to the port restrictions. We are requesting the Government to remove the port restrictions, especially in the current new scenario when prices are not depressed and stocks are low," Mr D Ravindran, Director-General of Automotive Tyre Manufacturers' Association (ATMA) told Business Line here.

Sheet rubber RSS 4 was quoted at Rs 46 per kg on during the weekend.

The Centre had in December 2001 stipulated that natural rubber could be imported into the country only through the ports of Vishakapatnam and Kolkata.

The second issue relates to granting of "subsidy" for encouraging rubber exports. "Encouragement of rubber exports through the subsidy route should be stopped as it is hurting consuming industry. Exports are further depleting the low level of stock of rubber in the country, " Mr Ravindran said.

The ATMA Chairman, Mr Raghupati Singhania, has written to the Government seeking its intervention for the removal of import restrictions on natural rubber.

Industry estimates show that natural rubber exports from the country during April-February 2002-03 stood at about 44,000 tonnes as against a level of 6,900 tonnes in the same period during the previous year. The stock level in February 2003 is estimated at 1,21,000 tonnes as against an actual stock level of 1,93,000 tonnes during the same period last year.

Imports of natural rubber during April 2002-February 2003 stood at about 20,000 tonnes as against 47,500 tonnes in the same period last year. While production of natural rubber during the period stood at 6,12,000 tonnes (5,96,000 tonnes in April 2001-February 2002), consumption of natural rubber was 6,41,000 tonnes (5,83,800 tonnes).

"We are now in a precarious situation where natural rubber production has gone up (Aprril 2002-February 2003) and so has the consumption. But along with this trend are the surge in exports and the reduction in imports, thereby impacting the stock levels," Mr Ravindran said.

Meanwhile, the Government is understood to have filed an appeal in the Supreme Court against the verdict of the Bombay High Court, which rescinded the ban on import of natural rubber under the Advance Licence Scheme.

The Government had in February 1999 imposed a ban on import of natural rubber under the advance license scheme.

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