In a major setback for the rubber farmers in Kerala the union government decided to allow import of 40,000 tonnes of natural rubber at a concessional duty of 7.5% for the current fiscal. The customs duty on natural rubber stands at 20% or 20 rupees per kg, whichever is lower, ever since April 1. Sources said that the Commerce Ministry had recommended allowing imports of one lakh tonnes duty-free. But the Finance Ministry, which has a final say, has treaded a cautious path in arriving at the final decision. In the first quarter this fiscal, rubber imports almost doubled to 38,233 tonnes compared with 19,118 tonnes during the same period a year ago.
KM Mani, Kerala finance minister condemned the union government decision. He alleged the central government reached on such an important decision without even consulting the rubber board. Mr Mani pointed out the decision would have a huge negative impact on the farmers
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