SunSirs: The Indian Government Raises Import Tariffs on Dry Rubber

https://www.chemnet.com   Aug 01,2024 SunSirs

According to Indian media reports on July 30th, the Ministry of Agriculture&Farmers Welfare of India released a report on Tuesday showing that the price of natural rubber in the open market is determined by supply and demand. International rubber prices also affect domestic rubber prices in India. The Indian government has raised the import tariffs on rubber dry rubber, from the previous "20% or 30 rupees/kg, whichever is lower" to a binding tax rate of "25% or 30 rupees/kg, whichever is lower".

In January 2016, the ports of entry for imported natural rubber were also restricted to Chennai and Navasiwa ports. In addition, in the federal budget for 2023-2024, the tariff rate for composite rubber will be increased from 10% to 25%.

The Indian government has determined the Minimum Supported Prices (MSP) for 22 statutory crops and the Fair Remuneration Price (FRP) for sugarcane based on the recommendations of the Council on Agricultural Costs and Prices (CACP), taking into account the opinions of state governments and relevant central departments, as well as other relevant factors.

CACP also consults with all stakeholders and seeks opinions on price and non price recommendations. The state government and various farmer organizations also receive suggestions/statements from time to time regarding crop coverage under the minimum guarantee plan. However, the inclusion of crops in the MSP framework depends on several factors, including food security factors, relatively long shelf life, widespread cultivation, and mass consumption projects.

The Indian Ministry of Commerce introduced the National Rubber Policy in March 2019, which includes new and re planting of rubber, support for growers, processing and marketing of natural rubber, labor shortages, growers' forums, foreign trade, Madhya Pradesh comprehensive strategy, research, training, rubber product manufacturing and export, climate change issues, and carbon markets.

Natural rubber cannot be treated as an agricultural product. Although the cultivation of natural rubber can be considered an agricultural activity, the income generated from its cultivation may not be considered agricultural income as it is a raw material specifically used for industrial purposes.

However, in most existing free trade agreements (FTAs) and regional trade agreements (RTAs), natural rubber is included in the exclusion list to protect the interests of rubber growers.

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