India: rubber industry seeks government help

- Mar 29, 2019-

In light of the financial crisis, stakeholders in the rubber value chain have sought the urgent intervention of the eu's minister of commerce in order to make an additional 50 million euros available to the rubber board in the current financial year.

Representatives from the growth, processing, manufacturing and trade sectors noted that the small growers and growers, which make up more than 90 per cent of the total, and which rely on small rubber holdings as their sole source of income, have been adversely affected by the board's financial crisis, particularly as a result of the accumulation of replanting of arrea.The RS

In a presentation to Suresh Prabhu, the commerce minister, they pointed out that a total of 225 million rupees in arrears due for planting subsidies had been settled but could not be paid due to a lack of funds.The new situation is causing difficulties for growers, who are already in the midst of a crisis triggered by falling rubber prices.

Sibi J Monipally, a representative of the Indian Rubber Growers Association and a member of the Rubber council, says the current financial crisis is the result of the committee's sharp spending cuts year after year.

He added that the rubber board had regulated its activities under approved spending plans over the years and that the funding shortfall affected not only the board's operations but also the sector's stakeholders, who wanted the board to provide guidance.

Other stakeholders include UPASI, ATMA, Indian latex processing plants and the federation of Indian rubber distributors.

As a big supplier of rubber chemicals in North America market, Shenyang Sunnyjoint Chemicals Co., Ltd. will keep an eye on the fluctuate.