The United Planters’ Association of Southern India (UPASI) has urged the Centre not to alter the existing import duty structure of natural rubber, as it affect the livelihood of nearly 13.2 lakh growers who depend on the sector.

Ajoy Thipaiah, UPASI president, emphasised the need to maintain the status quo on import duty on NR in the context of demands from sections of the user industry seeking reduction in import duty on key inputs and raw materials.

He pointed out that domestic natural rubber prices have shown a modest upward trend in recent months due to geopolitical developments and production shortages both globally and domestically arising from seasonal agro-climatic conditions. However, Indian NR prices remained subdued in comparison with international prices over the last two years, with domestic prices trailing international prices in 16 months out of the past 24 months. In addition, any marginal improvement in price realisation has been significantly offset by the steep rise in input costs.

Imports surging

Santosh Kumar, Chairman, Rubber Committee, said that imports of both NR and Compound Rubber (CR) have increased considerably over the years. Of particular concern is the growing share of compound rubber imports, which now account for nearly 40 per cent of total rubber imports, most of which is imported from ASEAN countries duty free.

The demands from sections of the consuming industry for reduction in import duty on NR are entirely unjustified and misplaced. The NR sector is characterised by long gestation periods and limited short-term supply responsiveness. Any dilution of the existing safeguard measures, including import duties, could adversely impact domestic production and have serious long-term consequences for the sustainability of the sector.

Thipaiah said that the prices of major inputs such as fertilisers, plant protection chemicals and skilled labour have increased at an estimated annual rate of 8-12 per cent over the past decade. Periodic wage revisions have further escalated production costs, thereby significantly eroding grower margins.

The natural rubber plantation sector plays a vital role in the economy through income generation, rural employment and support to downstream manufacturing industries. India presently has about 9.4 lakh hectares under NR cultivation with an estimated production potential of around 9 lakh tonnes. During 2025–26, actual production is estimated at approximately 9 lakh tonnes.

Published on May 11, 2026