Rising rubber prices hitting Punjab Inc

CHANDIGARH: Turbulent rubber prices are giving jitters to industry. For the last two years, prices of rubber have shown undue turbulence. The prices have gone up from under Rs 100 per kg to over Rs 245 per kg. The prices of rubber have gone up by 63% in 2010. Punjab has wider use of rubber for industrial production. India is the fourth largest producer of natural rubber and second largest consumer in the world after China.

Rough estimates suggest that Punjab’s industry uses more than 12% of the total rubber in the country. Jalandhar being the hub of rubber footgear production and with unexpected upsurge in the rubber prices, this vital industry is almost on the verge of extinction. As of now, only 100 odd units in Punjab are struggling for survival. Cheap products from China have further contributed to this catastrophe.

“Undue restrictions are responsible for unbridled rise in the prices. Natural rubber is erroneously being taken as agricultural commodity, whereas, it is an industrial raw material,” says APEX chamber of Commerce president P D Sharma.

Industry mavens feel that cess of Rs 1.5 per kg needs to be removed and natural rubber should be freely allowed to be imported to the country with a certificate from approved laboratory along with the consignment to certify the quality of natural rubber imported.