By IANS
Kolkata : The All India Rubber Industries Association (AIRIA), the apex body of the sector, will seek central help for setting up a technological upgradation fund with an initial corpus of Rs.5 billion.
S. Dhanania, eastern region chairman of AIRIA, said the rubber association was preparing a report on the need for technological upgradation on the lines of the textile industry. The report would be submitted to the union commerce and industry ministry in two months.
He said fresh capital investments were required for growth of the industry.
T.K. Mukherjee, vice-president AIRIA, said more natural rubber parks needed to be set up in the country to meet the growing demand for the product with the growth of the automobile industry.
Last year, around 50,000 to 60,000 tonnes of natural rubber were imported into India and consumption of rubber in the country stood at around 1.1 million tonnes.
The country exported around Rs.20 billion rubber last year.
With the setting up of a natural rubber park in Tripura, a part of the demand would be met. The park would help in development of Tripura, Mukherjee said.
West Bengal, which will emerge as an automobile hub with the setting up of the Tata Motors small car project in Singur, will benefit from the production of natural rubber in the neighbouring Tripura.
AIRIA has also decided to approach the central government to seek modification in the 20 percent import duty on natural rubber. The association said the import duty on natural rubber was different from that on finished products, which is 10 percent.