National Rubber Policy 2019
National Rubber Policy 2019
India is one of the largest rubber growing and consuming countries in the world. It stands sixth in the production of NR with one of the highest productivity of 694,000 Tonnes in 2017-2018. Optimistically, it can produce 900,000 Tonnes of NR out of the 822,000 hectares land available in the traditional rubber growing states. It provides a livelihood to tribal and other financially retarded community people. The National Rubber Policy 2019 is aimed at offering financial assistance, consultatory and regulatory services.
Due to the major spike in the rubber consumption and deficit in the NR production in India, around 40% of NR is imported from other major rubber producing countries such as Malaysia, Indonesia and China. The Ministry of Commerce & Industry, Government of India, established the Rubber Board in 1947 to strengthen the development of the rubber industry by offering financial assistance, consultatory and regulatory services.
You can also learn about the National Agroforestry Policy.
The board launched the National Rubber Policy in March 2019 to address the external and internal challenges faced by the Indian rubber industry. The intention of the policy includes:
- Constructing a well-developed value-chain of the environmentally sustainable and globally competitive rubber industry.
- Transforming the rubber industry in terms of supplying materials of international standards to the national and global markets.
- Elevating the financial status of the entire stakeholder community and national economic progress.
The policy functions with the below-listed objectives:
- To boost economic, social and environmental achievability of the rubber industry.
- To focus on the development of the entire rubber industry value-chain from production to other manufacturing activities.
- To expand the area under Natural Rubber by planting new trees and without causing any harmful impact on the natural ecosystem.
- To increase the NR productivity by following best Agro-management practices and systematic replanting.
- To ensure better income for rubber growers.
- To develop a strategy to increase the domestic production and meet with the demand of raw materials requirements.
- To promote activities to ensure the quality of the NR at par with international standards.
- To strengthen the manufacturing sector of the NR and encourage the export of rubber products.
- National Rubber Status Enhancement
Natural rubber is an industrial raw material which is grown in the landscapes that are primarily owned by small growers. The rubber processing is also carried out in a decentralised manner in small farms. The National Rubber Policy, in consultation with the Ministry of Agriculture and Welfare and Department of Revenue, intends to:
- Enhance the status of NR as an agriculture product to utilise the several domestic policies and schemes implemented by the Government
- Include in Agreement on Agriculture (AoA) and
- Increase the income from rubber production
- Production Achievability
Though self-support has been the main target of development plans in the NR industry, competitiveness and viability are also deemed as an important aspect while formulating the goals and strategies for the enhanced production of NR. The policy aims at:
- Meeting the demand of 2 Million Tonnes of NR production by 2030
- Expanding the potential areas to achieve the projected production
- Carrying out the planting and replanting of rubber plants in the expanded areas.
- Supplementary Growth for Rubber Industry Value Chain
The policy intervenes in synchronising the activities of Rubber Industry value chain such as NR production and process, manufacturing of tyres and other general rubber products, marketing and other promotional activities. The policy also intervenes in the operations of the Board to ensure a basic supply of 75% of NR is supplied for domestic usage. Further to this, the policy describes the following statements in touch with all the necessary points.
- Area extension services coupled with financial assistance in motivating growers to take up rubber cultivation.
- Replanting of disorientated rubber areas.
- Productivity enhancement with quality management.
- Facing the labour shortage and addressing the issue.
- Use of alternatives to minimise the demand and increase the raw material quantity.
- The Group Processing Centers (GPCs) prepares the rubber with proper processing methods to attain the right quality.
- Building a proper plan in educating the farmers related to planting methods, harvesting, processing, marketing, reduced cost and rise in the net farm revenue.
- Centre and State Cooperation
The policy strives towards the Centre and State Cooperation to achieve the following operations:
- To plan and execute the rubber development programmes as per the present economic requirements.
- To strengthen the rubber value chain development by providing training and financial assistance with the Centre-State coordinated approach
- To resolve any issues in the States and implement the rubber development activities that help in increasing NR production.
- Export and Import Policy
Due to the demand in the domestic market and availability of low-price rubber forms in the international market, there has been a significant rise in NR imports during recent years. The policy ensures,
- Prompt supply of domestic rubber raw materials to the end-users.
- Reduce the impact of NR import on the rates of domestic rubber raw materials.
- Frame policy to protect rubber growers from the rate fluctuations.
- Imports on a temporary basis that evolves on the demand periods.
- To maintain consistent and assured quality level.
6. Rubber Usage and its Products Export
Rubber consumption is the direct indicator of rubber-based industrialisation. The forecasted vision can be assessed from the present low automobile penetration in India. Growth in production and fitment of tyres is ultimately allied to the growth in GDP.
- The policy aims at supporting the Micro, Small and Medium Enterprises (MSME) with the following features:
- Provides a higher rate of employment.
- Research, study and analyse the Rubber and implement developmental activities.
- Technology upgradation and its transfer
- Upgraded Machinery import
- Promoting the export in large number with individual branding.
- Establishing Quality and continuous improvement.
- Overall, technology development with respect to the development of skilled workers.
2. The Promotional events in rubber product manufacturing are undertaken by
- Ministry of MSME,
- Department for Promotion of Industry and Internal Trade (DPIIT) and
- Industries Departments of State Governments.
- The Rubber Based Industrial Development is publicly procured and planned with the implementation of Rubber Parks. Development of Rubber Parks as processing hubs are promoted in the private sector or under PPP mode.
- Promotion of Road Rubberisation through National Rubber Policy benefits the sector:
- By enhancing rubber consumption in the country and
- With the Infrastructure strength in the long run
- The policy lays road for an independent Rubber Products Export Promotion Council to address the associated export issues that are specifically handholding the manufacturers belonging to MSME.
- Further, export-oriented clusters are acknowledged, and specific strategies are prepared and enclosed for giving the targeted enhancement in exports.
- Income of Small and Marginal growers.
The Policy regularly checks the price instability in rubber crop and address the adverse effect that lays on the livelihood of lakhs of small and marginal growers involved in the sector.
7. Financial Provision
The Government disburses a special budget for new plantation and replantation of rubber and the provisions stated below:
- For enhancing global competitiveness,
- Reducing import dependency of raw materials,
- Research, innovation and technological upgradation,
- Improvement in quality,
- Productivity enhancement,
- branding and market promotion including focus on exports, GAPs and environment-friendly processes,
- Skill development and improvement
- Protection and incentives for marginal sections such as smallholders, workers and small-scale entrepreneurs of non-tyre products,
- Execution of regulations on quality, standards and sustainability of Rubber Industry Value Chain, etc.,
Operation Framework and Regular Analysis
The policy foresees for an implementation framework to deliver on its obligations. The recommendation stated in the policy is evaluated with a serious thought process and opt for well-organised collaborations for implementation. The Central Government will stand the final authority to enact regular analysis, reviews on the future sequence and recommend pro-active and corrective feedback for the betterment of the Rubber Industry.
Post by Arnold Thomas
IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.