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Growers seek status quo on import duty on natural rubber

The United Planters’ Association of Southern India (UPASI) has urged the government to maintain the current import duty on natural rubber. The association cites the sector’s scale, current production, and price dynamics, while highlighting rising input costs and a growing share of duty-free compound rubber imports.

Why It Matters

A government decision on import duties could affect domestic rubber growers’ livelihoods, producer competitiveness, and the balance between domestic production and imports.

Timeline

1 Event

UPASI calls to maintain status quo on natural rubber import duty

May 9, 2026

The United Planters’ Association of Southern India (UPASI) urged the government to keep the import duty on natural rubber unchanged. Ajoy Thipaiah, UPASI president, stated that the rubber plantation sector sustains about 13.2 lakh growers and provides employment to around 4.2 lakh workers. India has approximately 9.4 lakh hectares under natural rubber cultivation, with FY26 production estimated at about nine lakh tonnes. Domestic rubber prices have shown a modest upward trend recently due to geopolitical developments and production shortages globally and domestically, though prices remain subdued relative to international levels over the past two years. Prices of major inputs such as fertilisers, plant protection chemicals, and skilled labour have risen by 8-12% over the past decade. Santosh Kumar, chairman of UPASI Rubber Committee, added that imports of natural rubber and compound rubber have increased, with compound rubber imports accounting for nearly 40% of total rubber imports, largely imported from ASEAN countries duty-free.