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LATEST NEWS UPDATES | Rubber growers protest duty cut by VR Jayaraj

Rubber growers protest duty cut by VR Jayaraj

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published Published on Aug 22, 2010   modified Modified on Aug 22, 2010


Rubber growers and traders of Kerala are up in arms against the Union Government’s decision to slash the import duty of natural rubber to 7.5 per cent from 20 per cent. Economists, farmers and traders feel that Central decision would cause the biggest agricultural crisis of recent times.

The steep cut in the import duty is sure to push the farmers and traders of Kerala, which accounts for more than 90 per cent of the total production of natural rubber in India, into huge losses. The initial Central move is to allow import of 100,000 tonne of natural rubber from East Asia at 7.5 per cent duty.

The decision has become a huge embarrassment for the Congress in the State as its own Government in the Centre is indirectly undermining its interests just when two important elections are to take place in less than eight months. The Congress and its ally Kerala Congress, whose backbone is the rubber sector, had told the farmers that the ASEAN free trade pact would not affect rubber cultivators as it had been included in the exclusion list

“On the one hand they (the Centre) say rubber is in the protected commodities list of the ASEAN trade agreement but on the other they are slashing the duty. What approach is this?” asked Jose K Mani, MP of the Kerala Congress, obviously unable to hide the embarrassment.

The Left has already moved in to cash in on the situation. Kerala Finance Minister TM Thomas Isaac, a central committee member of the CPI(M), announced on Friday that the LDF Government would protest against the Centre on the issue. “Consider this huge blow as Centre’s Onam gift for Kerala,” he said in Thiruvananthapuram.

State CPI(M) secretary Pinarayi Vijayan alleged that the Centre was pushing the Kerala farmers into deep trouble to help the tyre-manufacturers’ lobby. Leading farmers and traders in Kottayam, known as the Latex District, said they would unleash stirs against the decision.

 


The Daily Pioneer, 21 August, 2010, http://www.dailypioneer.com/277405/Rubber-growers-protest-duty-cut.html


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