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Govt to provide budgetary support to rubber sector for promotion of export

25 Feb 2019 Evaluate

In order to enhance research, promote exports and reduce dependence on import, the national rubber policy stated that the government will provide budgetary support to rubber sector. The proposed policy will also provide support for skill development; incentives for smallholders, workers and entrepreneurs; and enforcement of regulations on quality and standards. For all these measures, proportionate budgetary provisions would be made.

As per the draft policy, possibility would be explored for treating natural rubber as an agricultural product for all practical and legal purposes. The policy will also explore the possibility of treating income from rubber production as agricultural income, in consultation with the Ministry of Agriculture and Farmers' Welfare. The draft said the budgetary support from the central government would focus on new plantation and replanting.

The objectives of the policy include promoting overall sustainability of the rubber industry with respect to economic, social and environmental dimensions, development of entire value chain from upstream production to downstream manufacturing activities. Besides, the policy aims to increase the area under natural rubber by new plantation without causing any adverse impact on forests.

The draft has also suggested several policy interventions such as providing insurance cover for the growth of the sector. It said the import policy for natural rubber would be accorded special focus as imports have impact on both growers and end-user industries. Natural rubber is not a traditional export-oriented commodity and export may be promoted only to adjust temporary demand-supply imbalances in the domestic market. Most of the rubber products, including tyres, require blends of natural rubber and synthetic rubber. India is currently the sixth largest producer of natural rubber in the world with one of the highest productivity (6,94,000 tonne in 2017-18).

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