MARAN ALLAYS FEARS OF DUTY FREE IMPORT OF NATURAL RUBBER FOR ADVANCE LICENCE HOLDERS
Date : 21 Jun 2001
Location : New Delhi
Allaying the fears and concerns expressed in certain quarters over the likely import of 30,000 tonnes of natural rubber (NR) under OGL (Open General Licence) by tyre manufacturers and the possibility of lifting the ban of duty-free import of rubber for the advance licence holders, Shri Murasoli Maran, Union Minister of Commerce & Industry, has stated that the ban on import of natural rubber for the advance licence holders continues. In a letter to the Chief Minister of Kerala, Shri A.K. Antony, Shri Maran has pointed out that the ban continues contrary to speculative reports in the press in this regard.
As regards import of natural rubber under OGL by tyre manufacturers, Shri Maran has clarified that the industry can import its requirements by payment of the prescribed import duty of 25 per cent. "This choice and decision is left to the industry in a situation when they would do so only if the domestic rubber prices are higher than the natural rubber from international sources even after payment of the customs duty", adding that "the current international prices do not appear to be too favourable for such duty paid imports, unless the imports are for specialised categories".
Shri Maran also urged the Chief Minister of Kerala for all steps at his end for educating rubber growers to concentrate on aspects relating to enhancement of productivity and conforming to international quality standards, etc., rather than horizontal expansion in production, so that Indian natural rubber could become competitive in the international market in the coming years.