Parliament Question: Import of Rubber

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE LOK SABHA UNSTARRED QUESTION NO. 3702 ANSWERED ON 11/08/2026 IMPORT OF RUBBER 3702: DR. SHASHI THAROOR: Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased to state: (a) the annual average price of RSS-4 natural rubber and the details of domestic production, consumption and imports during the last three years and in the current year; (b) whether the Government has taken or proposes to take measures including through the Rubber Board, to ensure remunerative returns to natural rubber growers and improve the economic viability of rubber cultivation; (c) whether the Government will reconsider its March 2026 decision not to establish a National Rubber Price Stabilisation Fund in view of continued price volatility and rising production cost, if so, the details thereof and if not, the reasons therefor; and (d) whether the Government has examined concerns regarding continued imports of compound rubber, including alleged misuse of Free Trade Agreement provisions and third country routing, and their impact on domestic natural rubber prices and growers, if so, the corrective measures taken by the Government in this regard? ANSWER वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA) (a) The details of domestic production, consumption, imports and annual average price of natural rubber (RSS-4 grade) during the last three years and in the current year are attached as Annexure-I. (b) to (d) Government of India through Rubber Board is implementing the scheme “Sustainable and Inclusive Development of Natural Rubber Sector” for the benefit of natural rubber sector in the country. Under the scheme, Rubber Board provides financial / technical assistance for inter alia planting / replanting of natural rubber, rain guarding, promotion of good agricultural practices, and prevention of diseases. Under the Scheme capacity building programmes viz., training, demonstrations and skill development programmes are also conducted by the Board. These include skill development programmes aimed at improving availability of trained tappers, tapping efficiency and promotion of quality processing of sheets. The above measures, inter-alia, help in improving production, productivity and quality of Natural Rubber grown in the country, 1and support remunerative returns to growers and improve economic viability of rubber cultivation. Further, the Government, with the objective to regulate the import of natural rubber, had increased the duty on import of dry rubber from “20% or Rs. 30 per kg whichever is lower” to bound rate of “25% or Rs. 30 per kg whichever is lower” w.e.f. 30.4.2015. The Government had also reduced the period of utilization of imported dry rubber under advance licensing scheme from 18 months to 6 months in January 2015. The port of entry for import of Natural Rubber had also been restricted to ports at Chennai and Nhava Sheva in January 2016. Further, in the Union Budget 2023-24, the rate of custom duty on compound rubber was increased from 10% to 25% or Rs. 30 per kg whichever is lower. Currently, no proposal for establishing a National Rubber Price Stabilisation Fund is under consideration in Department of Commerce. The prices of natural rubber are determined in the open market based on demand and supply. International prices also influence domestic prices. The average price of natural rubber (RSS 4 grade) in Kottayam, Kerala during the period April to June, 2026-27 has been Rs. 253.21 per kg compared to an average price of Rs. 197.32 per kg during 2025- 26, an increase of 28.32 %. ***** Annexure I Annexure-I referred to in reply to Part (a) of Lok Sabha Unstarred Question No. 3702 for answer on 11.08.2026 Year Production Consumption Import Price- RSS 4 (Rs/kg) (MT) (MT) (MT) (Kottayam) 2023-24 8,57,000 14,16,000 4,92,682 155.72 2024-25 8,75,000 14,10,000 5,50,918 199.85 2025-26 9,05,000 14,27,000 4,59,081 197.32 2026-27(upto June 1,49,000 3,41,000 1,14,588 253.21 2026)* *provisional (Source: Rubber Board) 2