Rubber industry asks govt to fix band to curb high prices
The All India Rubber Industries Association has asked the government to fix a price band for natural rubber to check the huge rise in prices of the key raw material for rubber consuming industries.
By PTI |
NEW DELHI: The All India Rubber Industries Association has asked the government to fix a price band for natural rubber to check the huge rise in prices of the key raw material for rubber consuming industries.
In a letter to the Finance and Commerce Ministries, Association's northern region Chairman Vipin Jain said the band should be on the lines proposed by Finance Minister P Chidambaram in Jeddah for checking the unprecedented rise in crude oil prices in the global markets.
The prices of natural rubber should be determined by market forces and allowed to fluctuate within the band of minimum and maximum statutory prices, he said.
The government had fixed a minimum statutory price of Rs 32.09 per kg for the main grade of natural rubber in 2001. However the market price is currently ruling at Rs 125-140 per kg, which is over 300 per cent more than the minimum statutory price, he said.
"The maximum statutory price for rubber should be fixed at Rs 85 per kg, which is 162.5 per cent above the minimum statutory price," he added.
Urging the Department of Industrial Policy and Promotion to convene a meeting of the Ministries of Finance, Commerce and the PMO, the Association said the unprecedented increase in prices of natural rubber had impacted several manufacturing units across the country.
"While many units have been closed, some are partially working, while others are incurring losses," Jain said.
Fixing the price band for rubber would also help check the soaring inflation, which has crossed 11 per cent, besides giving relief to the rubber consuming industry, he said.
In a letter to the Finance and Commerce Ministries, Association's northern region Chairman Vipin Jain said the band should be on the lines proposed by Finance Minister P Chidambaram in Jeddah for checking the unprecedented rise in crude oil prices in the global markets.
The prices of natural rubber should be determined by market forces and allowed to fluctuate within the band of minimum and maximum statutory prices, he said.
The government had fixed a minimum statutory price of Rs 32.09 per kg for the main grade of natural rubber in 2001. However the market price is currently ruling at Rs 125-140 per kg, which is over 300 per cent more than the minimum statutory price, he said.
"The maximum statutory price for rubber should be fixed at Rs 85 per kg, which is 162.5 per cent above the minimum statutory price," he added.
Urging the Department of Industrial Policy and Promotion to convene a meeting of the Ministries of Finance, Commerce and the PMO, the Association said the unprecedented increase in prices of natural rubber had impacted several manufacturing units across the country.
ADVERTISEMENT
"While many units have been closed, some are partially working, while others are incurring losses," Jain said.
Fixing the price band for rubber would also help check the soaring inflation, which has crossed 11 per cent, besides giving relief to the rubber consuming industry, he said.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
