To stimulate exports, Rubber Board announces incentives for sheet rubber
In its efforts to stimulate exports, Rubber Board has announced an incentive of ₹5 per kg for sheet rubber shipments.
The scheme will be in operational from March 15 to June 30 and the Board has constituted an Export Promotion Cell to address the various issues and hand-holding support to exporters.
M Vasanthagesan, Executive Director of the Board, urged exporters and Rubber Board companies to explore the present export opportunities to the fullest in the days to come. This will also help to stabilize prices of natural rubber in the domestic market as well.
A decision to this effect was taken at a meeting conducted by the Board to take stock of the current situation and explore export opportunities and more than 60 exporters including Rubber Board companies attended. Sawar Dhanania, Chairman, Rubber Board; N Hari, Member; George Valy, President, Indian Rubber Dealers Federation, spoke.
Natural Rubber exporters having valid registration–cum–membership certificate (RCMC) issued by the Board and registration for using Indian Natural Rubber Logo will be eligible for availing incentive. The assistance will be provided as reimbursement on production of prescribed documents under the scheme. The incentive will also offset the additional cost involved in branding.
The international price of sheet rubber has surpassed Indian price since mid-January. Even though there is price difference, exporters are not able to export due to the lower price quotes from various producing countries like Vietnam. On the global front, sheet rubber consumption accounts for hardly 10 per cent. China, Malaysia, Sri Lanka are the major consumers of RSS grade. These consuming nations have long-term contracts for procurement of sheet rubber which was stopping exports from India.
The price hike in international market (Bangkok) is on account of tight supply conditions due to wintering in South-East Asian countries, unfavourable weather conditions in the November-December period in Thailand, leaf fall on account of fungal disease and lean production period. From last week onwards, Indian prices are also on the rise owing to enthusiasm shown by the exporting fraternity for fetching export orders supplemented by keeping track with developments happening in international markets too.