The participation of global majors in the rubber industry at the three-day seminar, organised by the All India Rubber Industries Association (AIRIA), has become more important especially because of the sliding global prices which are feared to dip further over the next few months as the members of the International Rubber Organisation (INRO) is expected to offload their stockpile soon. Inevitably, the players in the global rubber industry seem to be more concerned of their role, if not survival, in the emerging price scenario.

Over the next two days participants are expected to discuss the the near future and the survival of the natural rubber industry. Discussions on international industry, technical and non-technical topics covering different subjects like technology, management, environment and e-commerce will try to provide some clues to the future of the rubber industry.

Addressing the inaugural function AIRIA president Anil Sampat said: "Supreme Court's recent judgement directing the government to fix a minimum support price (MSP) for natural rubber will hamper the overall growth of the domestic rubber industry. In the times of free trade under the World Trade Organisation, how can an industry survive if its inputs are being sold at administered price and not at the market price and the producers are forced to sell the outputs/products at global price? Eventually the rubber-user industry here will be uncompetitive and will eventually be forced to close down."

``The Kerela government decision to ask the Central government to shift natural rubber from the non-agricultural basket to the agricultural basket under the WTO dispensation is yet another retrograde step. The aim of the move is to shift the peak import duty slab from the present 25 per cent to 100-150 per cent," he added.

According to Mr Sampat, under the existing agreement of WTO, rubber falls outside the agricultural basket. ``The very recent lifting of Quantitative Restriction (QRs) have changed the role of the rubber industry," he added.While addressing the the function, the Minister of State for Commerce and Industries, Omar Abdullah, said: "Indian rubber industry needs to have an innovative approach and venture into new areas for promoting country's trade in an increasingly competitive trading environment. India's present export protfolio is limited and focused on a limited number of markets." He urged the industry to have an efficient back-up service, quality guarantee, product replacement and technical assistance which can give the Indian industry a lead in the global market.

CEAT Ltd, vice president (manufacturing), RK Dhawan said: "The Indian tyre industry has exported 2.2 million tyres at Rs 8.5 billion in 2000. However, the export performances over the last two years were affected on account of the economic crisis in south east Asian countries and increasing the competition from China."

Mr Dhavan added that the profitability of the rubber industry has come under severe pressure. According to one of the leading tyre manufacturers, foreign companies which are participating in exhibition are looking for immediate business opportunities in India. Foreign Exhibitors' are too positive to get `good amount of business' particularly in the machinery sector.