: AIRIA drafting PLI scheme for Centre to enhance rubber goods production #FinanceIndia #StockMarketNEWS AIRIA drafting PLI scheme for Centre to enhance rubber goods production New Delhi, Mar 17 (KNN)

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AIRIA drafting PLI scheme for Centre to enhance rubber goods production #FinanceIndia #StockMarketNEWS
AIRIA drafting PLI scheme for Centre to enhance rubber goods production New Delhi, Mar 17 (KNN) With the aim to promote Rubber goods production in India, the All India Rubber Industries Association (AIRIA) is formulating a productivity-linked incentive scheme (PLI) for centre’s consideration, AIRIA President Ramesh Kejriwal told businessline.

In an online interaction, Kejriwa informed that the association is in consultation with other stakeholders and the policy will be ready in the next three to six months.

The AIRIA president said that a lot of buyers abroad are looking at the Indian market and have shifted to our products. The PLI scheme will give an impetus to the rubber goods industry in India, which is now emerging as an alternative to China.

As per reports, currently there is around 20-25 per cent shift from China to India.

The Centre should come up with a benchmark price for natural rubber to encourage farmers. “If prices are not remunerative, farmers will not grow the crop in the coming years and switch over to other crops,” he said.

This is important since natural rubber production, which increased to a nine-year high last fiscal, has begun to increase over the last couple of years after decreasing continuously.

Currently, natural rubber production in the country is 7.75 lakh tonnes (lt) and demand at 12.5 lt. India has to import to meet the demand, which increased to a three-year high last fiscal, to make up the gap.

“There is still a 40 per cent gap between demand and supply,” the AIRIA president said, adding that the Centre should encourage higher area under natural rubber by providing incentives to growers.

On natural rubber prices, the AIRIA president said they are likely to rule low over the next 2-3 months. “They will recover after that, at least between 10 per cent and 20 per cent,” he said. (KNN Bureau)