Plastics & Rubber Vietnam

ADVERTISING
Informa
Home / News & Media / Industry News / South Indian natural rubber sector suffers Rs 610 crore loss after lockdown: Upasi

South Indian natural rubber sector suffers Rs 610 crore loss after lockdown: Upasi

22 Jun 2020

The association has estimated a crop loss of 49000 tonnes valued at Rs 610 crore from the last week of March and April. The absence of rubber trading has affected cash flow and revenue, especially from the sale of sheets and latex that came to a standstill, Upasi said in a representation to the Rubber Board.

The United Planters’ Association of Southern India (Upasi) has called for a ban on the import of natural rubber for one year and enhancement of bound rate of duty from the current level of 25 % as production loss mounts in the natural rubber sector.

The association has estimated a crop loss of 49000 tonnes valued at Rs 610 crore from the last week of March and April. The absence of rubber trading has affected cash flow and revenue, especially from the sale of sheets and latex that came to a standstill, Upasi said in a representation to the Rubber Board.

Upasi president AL RM Nagappan said the import ban should be for one year or till the available domestic stock of 3.10 lakh tonnes is exhausted. Further, import should be prohibited during high cropping months of September to February.

Upasi sought direct transfer of wages to workers’ account for the lockdown period of March 25 to April 20, which works out to Rs 466 crore. In addition to this it also requested for a wage subsidy scheme and payment of PF contributon of employer and employee in the rubber sector by the government which in South India will amount to Rs 323 crore.

Other short term demands include, interest-free loans, interest subvention of 3% to all loans in rubber sector, 25% enhancement in crop loan limit, reschedule of payment of loans and MSP at cost of production plus 50%.

Among medium term demands are renegotiation of free trade agreements, enhancement of replanting subsidy and classification of NR as an agricultural commodity

Spread of Covid-19 and subsequent lockdown happened when the rubber sector was beset by declining prices and increasing imports. The emerging international factors are also not conducive for NR sector in the days ahead as world economic growth is downsized drastically.

Source: The Economic Times

Latest News

  • Item

    The sample 3

    13 Jul 2020
    All seats of international conference under topic: “Circular economy – Formula for the plastic industry’s sustainable development” have been filled by many attendees and...
    Read more
  • Item

    The sample 2

    13 Jul 2020
    All seats of international conference under topic: “Circular economy – Formula for the plastic industry’s sustainable development” have been filled by many attendees and...
    Read more
  • Item

    Vietnam seeks to accelerate plastic waste recycling

    22 Jun 2020
    A large amount of plastic waste is discharged in Vietnam but the country still lacks an efficient solution for recycling that type of waste....
    Read more
asset
© 2020 Plastics & Rubber Vietnam all rights reserved
Book a stand
Pre-Registration Now
Follow Us