Natural rubber does not qualify for inclusion under MSP, Union Govt informs Kerala MP

Rajya Sabha member and CPI(M) leader Elamaram Kareem came up with a letter by Union Minister for Commerce and Industries Piyush Goyal where he said that natural rubber does not fulfil criteria for inclusion under Minimum Support Price.

Bishop Pamplany had stated that farmers would vote for the BJP if the Centre offers an MSP of Rs 300 for natural rubber. (Photo credit: Facebook / Rubber Board, India)
Key Highlights
  • The letter dated March 15 was a response to the petitions submitted by Left MPs after meeting Goyal following the Union Budget.
  • Kareem said that Goyal's letter is a reply to those who knowingly or unknowingly fall into the BJP's trap.
  • Kareem said that the major reason for the fall in price of natural rubber was the ASEAN-India Trade in Good Agreement

In the wake of a speech of Thalassery Archbishop Mar Joseph Pamplany becoming controversial, Rajya Sabha MP and CPI(M) leader Elamaram Kareem came up with a letter by Union Minister for Commerce and Industries Piyush Goyal which said that natural rubber does not fulfil criteria for inclusion under Minimum Support Price. The letter dated March 15 was a response to the petitions submitted by Left MPs after meeting Goyal following the Union Budget.

Bishop Pamplany had stated that farmers would vote for the BJP if the Centre offers an MSP of Rs 300 for natural rubber.

“Crops considered under MSP are generally major agricultural commodities which are widely grown and have large areas under cultivation and items of mass consumption with fairly long shelf life or/and are necessary for food security. As natural rubber does not fulfil most of the criteria for inclusion under MCP, hence, it is not included in the mandated crops for MSP,” Goyal wrote.

Kareem said that the major reason for the fall in price of natural rubber was the ASEAN-India Trade in Good Agreement (AITIGA). “Around 88 % of compound rubber is imported from ASEAN countries. The compound rubber is duty-free under AITIGA) The Union Minister has said that they cannot withdraw the tariff concessions granted under the Trade Agreement,” Kareem said.

Kareem said that Goyal’s letter is a reply to those who knowingly or unknowingly fall into the BJP’s trap.

In the letter, Goyal has also explained that the Union Government had increased the import duty of dry rubber in order to promote domestic production of natural rubber. It also reduced the period of utilisation of imported dry rubber under advance licensing scheme from 18 months to 6 months in January 2015, he said. He also added that port entries for import of natural rubber were restricted to Chennai and Nhava Sheva. “Further, in the union budget 2023-24, the rate of custom duty on compound rubber has been increased from 10 % to 25 % as that on natural rubber,” he wrote in the letter.