Transcript NATIONAL POLICY ON RUBBER

ISSUES IN LATEX PROCESSING
Santosh Kumar
Vice president, Association of Latex
processors of Kerala
Latex Processing -Statistics
Profile of Concentrated Latex Processing Industry in
India
Total number of latex processing factories: 75
Total installed capacity: 2,35,000 m.tons of DRC
Production during 2012-13: 73,150 tonnes of DRC
(8.0% of the total quantity of 913,700 tonnes of NR
production in India).
Capacity utilisation: 31.1 %
Domestic consumption: 76,705 tonnes of DRC
which is 7.9% of the total quantity of 972,705
tonnes of NR consumed in the country during 201213.
GROWTH AND CURRENT STATUS OF INDIAN LATEX INDUSTRY :
Qty (Mt)
Production
Consumption
Import
Export
Capacity
2011-12
76490
73190
1775
15127
216000
2012-13p
73150
76705
63
7052
235000
2013-14p
68000
77500
2378
1318
235000
Production of centrifuged latex peaked in India from the
low level of 6,000 tonnes in 1972 to touch 90,950 tonnes
in 2005-06, but came down thereafter to reach the level
of 73,150 tonnes in 2012-13 and 68,000 in 2013-14
DEMAND AND SUPPLY OF LATEX FOR THE NEXT 10 YEARS
Production (Tonnes)
Consumption
(Tonnes)
2012-13 2011-12 2010-11 2009-10 2008-09 2007-08
73,150 76,490 76,065 85,760 88,070 88,305
76,705
Closing stock (Tonnes) 21,760
73,190
17,285
77,380 82,515
13,945
13,435
80,520
11,385
77,715
13,285
The domestic consumption pattern of Latex during the last
five years shows a mixed picture with slight improved
consumption in 2013-14
2013-14 2014-15 2015-16 2016-17 2017-18 2019-19
Production (Tonnes)
68,000 72,080 79,288 87,217 95,940 105,530
Consumption (Tonnes) 77,500 82,150 87,079 92,304 97,842 103,713
Based on the past rate of consumption, it is expected that the Latex based industry
can grow at the rate of 5 to 6% annually as given below: Since the capacity
utilization is very low ,the processing industry can meet any increase in demand in
the near future.
Latex Producers concerns over import of large quantities of NR latex and the
resultant impact on domestic price of NR Latex
IMPORT OF LATEX (Mt)
2011-12
1775
2012-13p
63
2013-14p
2378
CONCERNS – PROCESSING OR TRADING ?
There are 2 basic threats to this industry
 Import of latex based finished goods from ASEAN nations And
China under the inverted Duty structure.
 Import of Cenex from south East Asian nations through the
window of Advanced license scheme.
MISUSE OF ADVANCE IMPORT LICENSES
There seems that there are no proper controls on the use of the imported
material and its usage by the importer. A good quantity of material is being
imported as a cheaper alternative to higher domestic prices and using the
long window of export to divert imported material into local market and use
favourable price points for Export.
This leads to
-
Kills the motivation of local industry to produce
Reduces local prices of produce.
leads to dumping of local markets with international
products
Present Import structure
The present import duty is Rs.49/- or 70% whichever is
lower. This is based on 3 points
- Adequate processing capability is available in the
country.
- 40% of the concentrate is water import of material
entails import of 40% water at the cost of precious
foreign exchange.
- A very high farm gate price of field latex (95%) to the
grower compared to other forms of Rubber
Suggestions
• We further submit that:
• 1) there should be a ban on the import of Latex based
rubber products which are being manufactured in India
• 2) latex concentrates are exported on a regular basis,
by evolving a mechanism to ensure that such exports
can take place even when the domestic prices are
higher
• 3) to encourage and promote latex based small and
medium scale units and with Technical, financial and
marketing support from the Rubber Board.
THANK YOU