Sat May 03 13:56:38 UTC 2025: ## Indian Government Acts to Protect Rubber Growers Amidst Unfair Trade Practices

**KOTTAYAM, Kerala, May 3, 2025** – Kerala’s rubber growers are celebrating a victory after years of struggling against unfair trade practices. The Union government has finally responded to their concerns about tyre companies exploiting loopholes in decades-old Standard Input-Output Norms (SIONs) to suppress domestic rubber prices.

The Directorate General of Foreign Trade (DGFT) has initiated a comprehensive review of the SIONs for automobile tyres, following pressure from growers. These norms, which dictate the amount of raw material needed for export products, are crucial for tyre companies claiming duty exemptions. Growers allege that tyre manufacturers are drastically underutilizing natural rubber, using only 18-20% instead of the 44% allowed by the outdated 1970s norms. This allows them to import significantly more rubber duty-free than necessary, flooding the domestic market and depressing prices.

Babu Joseph, general secretary of the National Consortium of Rubber Producers’ Societies (NCRPS), stated that this loophole allows companies to import nearly double the required amount of rubber duty-free, with only half used for exports, the rest undercutting domestic prices. He further highlighted that a delay in renewing a crucial notification exacerbated the issue, leading to a surge in duty-free imports.

Following a March meeting between growers and Union Commerce Minister Piyush Goyal, the government has begun addressing several demands, including evaluating the impact of importing rubber and latex compounds and increasing replanting credit support to ₹6 lakh at nominal interest. The Rubber Board has already held a stakeholder meeting in Kottayam to move forward with these initiatives. This action signifies a significant step towards fairer trade practices for India’s rubber industry.

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