UPASI Urges Government to Maintain Natural Rubber Import Duty

The United Planters’ Association of Southern India (UPASI) has urged the Indian government to maintain the existing import duty on natural rubber, opposing calls by sections of the rubber user industry to reduce tariffs on key inputs. The association cited the livelihoods of 13.2 lakh rubber growers and 4.2 lakh workers dependent on 9.4 lakh hectares of rubber plantations across the country.

Domestic natural rubber prices have seen a modest rise recently due to global geopolitical tensions and production shortfalls, though they have remained below international levels over the past two years. Input costs for fertilisers, plant protection chemicals, and skilled labour have increased by 8-12% over the last decade, squeezing plantation profitability.

UPASI highlighted a sharp rise in natural and compound rubber imports, with compound rubber accounting for nearly 40% of total rubber imports, mostly sourced duty-free from ASEAN countries. The association warned that increased inflows of duty-free compound rubber could undermine domestic production and distort market conditions.

The government has not yet responded to UPASI's appeal. A decision on import duties is expected during the upcoming budget session, with stakeholders awaiting official clarification on trade policy adjustments.