Purchase tax sop not helpful, say rubber growers

KOCHI: The purchase tax exemption given to all grades of rubber by the Kerala government has squeezed the income of growers instead of benefitting them, says the Association of Planters of Kerala (APK).

Good quality RSS-4 grade rubber is being bought as lower quality RSS-5 grade as tax exemption is available to both.The downgrading of quality has resulted in the farmer losing Rs 10-15 per kg. The buyers are using this ploy to highlight that the quality of rubber produced in the country is inferior so as to justify imports, said C Vinayaraghavan, APK chairman.Rubber prices are at a five-year low and the grower is making a loss of nearly Rs 40 per kg of rubber he produces.

“The purchase tax exemption given to all grades of rubber may be withdrawn, except for RSS-4 grade for which daily reference price is published by the Rubber Board,“ he said.

Already, the small farmers have started looking for other vocations for a sustainable income, and unless a corrective action is not taken, it may compel more growers to move away from rubber cultivation causing a steep fall in the rubber output here, he said.

APK reiterated its demand for banning imports till prices reach cost of production, enhancing import duty of rubber to 30% and increasing re-plantation subsidy.