October 6: The Union commerce ministry has allowed the State Trading Corporation (STC) to procure 10,000 tonne natural rubber in a bid to shore up the falling price of the commodity. The ministry has also identified 35 primary cooperatives in the state from which to buy natural rubber as the Rubber Marketing Federation has not been able to meet STC's demands for the government-funded procurement drive.

Commerce minister B B Ramaiah said in Kochi on Monday that STC has been able to procure only about 1,300 tonne natural rubber despite a mandate for major market intervention by the corporation to protect rubber farmers. The minister, however, remained vague about the price at which STC would procure natural rubber from the primary cooperatives. However, he said, "the government intends to help stop further fall in the price of the commodity and to stabilise the price at around Rs 42 a kilo". A kilo of the RSS-4 variety of natural rubber now fetches only Rs 34. The Minister said that the 35 primary cooperatives identified by the Rubber Board will be able to meet the demands of STC.

As a long-term measure to meet the crisis, a `Rubber Park' is being set up near here to develop rubber-related industries. The Rs 36-crore Rubber Park will develop industries that use natural rubber as raw materials. The venture is being promoted by the Rubber Board and Kerala Infrastructure Development Corporation. The foundation for the project is being laid by the minister on Tuesday.

Meanwhile, the ministry is exploring the possibility of export of natural rubber "even at a loss" to prevent the collapse of rubber cultivation in the country. The minister attributed the sudden fall in the price of natural rubber to the Puja season holidays and the recession in the automobile industry.

Pakistan has been identified as a major destination for Indian tyres in the near future, he said. "We are considering seriously the possibilities of exporting tyres to Pakistan", he said. Efforts were also being made to increase the content of natural rubber in tyres for trucks, four and two-wheelers.

The government is also taking steps to prevent the dumping of second-hand tyres in the Indian market, Ramaiah said. However, he ruled out the possibility of a total ban on the import of used tyres but said that 100 per cent duty on imported tyres at about $ 175 per piece will be able to help the Indian tyre-makers. The Minister also said that about 2,000 tonne natural rubber had been imported during the current fiscal.

Seafood: At least some of the seafood processing units in Kerala may be able to come out of the purview of the ban imposed by European Union on Indian seafood. Ramaiah said that by October end these units will invite a delegation from European Union to inspect the processing facilities.

He put the onus on the state to extend a helping hand in aiding the seafood processors from coming out of the ban. The minister said that he would discuss with chief minister E K Nayanar the problems facing the industry. Conditions in the fishing harbours and proper supply of electricity are two areas the state can look into, Ramaiah said.

Cardamom smuggling: The Centre has ordered strict vigilance at all the major ports to prevent the smuggling of Guatemalan cardamom. Ramaiah said that he had talks with his Nepalese counterpart on the issue. It is estimated that about 150 tonne Guatamalan cardamom came into India via Nepal. A team is being sent to Singapore and Guatemala to make on-the-spot assessment of the situation, the minister added.

Stronger Re hitting exports

KOCHI: Commerce minister B B Ramaiah said here on Monday that the exports from the country has regained its momentum in the second quarter following a surge in non-traditional items like software, chemicals, textiles and engineering goods. He said compared to the negative growth recorded in the first quarter exports registered a turnaround in the second half adding that the trend is likely to persist in the remaining period of the current fiscal.

Ramaiah said that political uncertainties and a crippling truck strike had a telling effect on the exports in the first three months of the current fiscal. He said software exports alone recorded a 60 per cent growth in the second half. Textiles recorded a 20 per cent growth while chemical industry clocked 20-30 per cent growth followed by engineering goods, he said. However, he said the appreciation of Rupee was a major drag on the exports growth. While the currencies of the competing countries have registered a steady decline, the Rupee moved up considerably during the period forcing Reserve Bank's intervention. This has affected the competitiveness of our exports, he added.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.