The Committee noted that STC did not have the stock of 5 lakh tonnes ofrubber in its warehouse as was required, and recommended ample funds beprovided to the state procurement agency to enable it to procure thiscommodity at the support price declared by the Government. It said that theGovernment had not declared the support price of rubber for this year.

In view of the problems faced by the domestic rubber growers efforts areneeded to not just increase the domestic consumption of rubber but restrictits import, Standing Committee on Commerce said in its forty-secondreport.

It said that steps should be taken for enhancing exports not just of naturalrubber but also finished products to support rubber growers. The Committeesaid that there were apprehensions that rubber planters may resort tocutting the plants and switch over to other crops as Malaysian rubberplanters did.

The committee said that though rubber growers contribute about Rs 120 croreof cess to the Government, both plan and non-plan budget allocation forrubber was very low. While subsidy on new planting and replanting had beenreduced, the Government had totally withdrawn subsidy on fertilisers andcrop harvesting, the committee said adding that small land holders whoconstitute 95 per cent of the total rubber planters were being subjected tosubsidy cuts.

The committee has suggested that extension service may be provided to allplantation areas. It said that an organised plant protection scheme wasrequired for scientific crop exploitation and processing. Natural rubberproduction in the country during 1998-99 stood at 6,05,045 tonnes as against5,83,830 tonnes in 1997-98. India is the fourth biggest consumer of naturalrubber in the world.