CALLING ATTENTION TO PLIGHT OF RUBBER FARMERS DUE TO FALL IN PRICES OF RUBBER

P. RAJEEVE: Sir, I beg to call the attention of the Minister of Commerce and Industry to the plight of rubber farmers due to fall in prices of rubber.

(after minister’s statement)

P. RAJEEVE: Sir, I would like to speak something in Malayalam. * Sir, I would like to speak something in Malayalam. Sir, we belong to Kerala. Kerala is the land of coconut. (Interruption) It is already requested and I think it is available. Even though Kerala is known as the land of “Kera”, or coconut, rubber is one the crops that make a major contribution to the present economy of Kerala. Out of the total rubber production in the country, Kerala’s contribution comes to around 80 to 85 percent. Around 12 lakh farmers in Kerala  depend on rubber cultivation. Another 6 lakh labourers also depend on the rubber sector. Therefore, the fall in the price of rubber directly affects the lives of 18 lakh families. But this is not only a problem that affects the lives of 18 lakh people ……..(Interruption)

SHRI K.N. BALAGOPAL: I hope the Minister can understand.

SHRI P. RAJEEVE: The Minister can understand Malayalam also.

THE MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS (SHRI MUKHTAR ABBAS NAQVI): I can understand Malayalam a little bit.

MR. DEPUTY CHAIRMAN: Is the translation there?

SHRI MUKHTAR ABBAS NAQVI: Even without translation, I can understand.

SHRI P. RAJEEVE: Getting translation. Okay? Translation is available. Apart from directly affecting the lives of 18 lakh people, the fall in the price of rubber has its impact on the general condition of the economy. For example, in Pathanamthitta district which, Sir you belong to, in the district of Honourable Deputy Chairman, the business in super markets has fallen by 40 percent. Similarly, business has fallen by 50 percent in Kottayam district. In this manner, the fall in the price of rubber has become something that has wide repercussions in different sectors of the economy. As far as Kerala is concerned, farmers find it difficult to survive and as a result the state is witnessing suicides by rubber farmers. Though I had given notice for a Calling Attention Motion in the last session on this very subject, it could not be taken up and discussed in the House due to many reasons. At that point of time the price of rubber was Rupees 140-150 per kg, but now when we discuss this calling Attention motion after one session , the price has come down to Rupees 106 per kg. Sir, you have a rubber cultivation of above one acre. You know very well ………

MR. DEPUTY CHAIRMAN: I have only one acre of rubber.

SHRI P. RAJEEVE : You have that much in your name…..

MR. DEPUTY CHAIRMAN: No, no; I refute that kind of an insinuation. All what I am having is only one, and only one, nothing else.

SHRI P. RAJEEVE: Sir, so you are well aware of the fall in the price of rubber.

Sir, I am not blaming the hon. Minister or this Government for this. But I am accusing the Minister and the Government for continuing the same policy. Actually, these policies are the product of the previous Government. Mr. P. Chidambaram, the former Finance Minister had reduced the Import Duty to 20 per cent. After our pressure, he was ready to make a slight change; 20 per cent or Rs. 30 per kilogram, whichever is lower. Sir, yesterday’s price, (Sir, Rupees 107 was yesterday’s price. Daily Reference Price, DRP is entirely different from the actual price. DRP is the bank-on price plus 20 per cent, but the price which the farmer is getting is Rs.20-25 less for a kilogram. Sir, the farmers are forced to cut rubber trees. The farmers and their families are committing suicides in Kerala. Sir, 2008, a farmer used to get Rs. 1 lakh profit from one hectare, but now they are losing Rs. 1 lakh for one hectare. The prices are down by 32.7 per cent from 2011-12. So, there is a decline of 32.7 per cent in the price. Sir, in the Ninth Plan, the farmers are getting 50 per cent subsidy of the production cost. The production cost for one kilogram of rubber is around Rs.150. Now, they are getting only Rs.107 or Rs.108. In the Ninth Plan, the farmers are getting 50 per cent of the production cost as subsidy. But now they are not getting anything. They are getting a very negligible thing. Actually, they have to bear all the production cost of rubber. Sir, this is the product of the policies of the UPA Government, and this Government is still continuing it. As per the reply, the Government stated that, in December 2013, there was an increase of 20 per cent or Rs.30, and now the Commerce Ministry proposes to increase the bound duty to 25 per cent. The Minister has always been saying this, in the last session also, but they are not getting the Finance Ministry’s clearance. Our demand is that the Import Duty should be increased to 30 per cent. There are some interpretations of the World Trade Organization’s Agreement, but, at least, without cap, immediately you implement this proposal. We are not ready to wait any more. The Import Duty should be increased to 25 per cent immediately, without any cap. In fact, our demand is that it should be increased to 30 per cent. Why has this happened? I would like to invite your attention to some points, i.e., the profit of tyre companies. Sir, last year, in 2013, quarter 2, Apollo Tyres’ profit was Rs.109 crores.

Now, in 2014-15, quarter 2, it has increased by 48.17 per cent. JK Tyres’ profit has been increased by 65.7 per cent. MRF Tyres’ profit has been increased by 72.13 per cent. This is one year’s increase. I am just comparing 2013-14, quarter 2, with 2014-15 , quarter 2. One year’s increase in profit is 72 per cent!

The share price of the Apollo Tyres, in 2013, was Rs. 62/-; today, it is Rs. 222/-. The share price of the JK Tyres, in 2013, was Rs. 89/-; today, it is Rs. 643/-. The share price of the MRF Tyres, in 2013, was Rs. 13,345/-; today, it is 37,750/-. So, there has been a huge increase in the share prices of the tyre companies. On the other hand, the rubber producers are not getting appropriate price for their production. The prices are falling. They are forced to cut down the rubber trees. This is the scenario. This policy is to protect the interests of the tyre manufacturers. This is a discrimination against a major section of the society. (Time-bell) I am concluding, sir.

The strategy of the Rubber Board is different. The strategy of the Ministry is different. In fact, they are having more than 1,52,767 tonnes. They have more rubber than their requirement. This is actually hoarding. They are importing more than their requirement. Then, they force to reduce the prices. And, this is a very serious situation. The Government is raising a slogan. In fact, this Government is a Government of slogans. That slogan is ‘Make in India’. What is ‘Make in India’. Is it only for the corporates? If we want ‘make in India’ in the rubber sector, then, we should give more incentives to the rubber industry. We demand that this Government should increase the import duty on rubber, and give compensation to the farmers. There is a Price Stability Fund. It is not working properly. The Price Stability Fund should be there and work properly. The rubber cultivators are in distress due to the policies of the Government. The Government is bound to give compensation to the farmers. As per the statement of the Minister, they have given a proposal to the Ministry of Finance and are waiting for the approval. In June, 2014, they had initiated the The strategy of the Rubber Board is different. The strategy of the Ministry is different. In fact, they are having more than 1,52,767 tonnes. They have more rubber than their requirement. This is actually hoarding. They are importing more than their requirement. Then, they force to reduce the prices. And, this is a very serious situation. The Government is raising a slogan. In fact, this Government is a Government of slogans. That slogan is ‘Make in India’. What is ‘Make in India’. Is it only for the corporates? If we want ‘make in India’ in the rubber sector, then, we should give more incentives to the rubber industry. We demand that this Government should increase the import duty on rubber, and give compensation to the farmers. There is a Price Stability Fund. It is not working properly. The Price Stability Fund should be there and work properly. The rubber cultivators are in distress due to the policies of the Government. The Government is bound to give compensation to the farmers. As per the statement of the Minister, they have given a proposal to the Ministry of Finance and are waiting for the approval. In June, 2014, they had initiated the process of evolving marketing. Now, eight months have already passed but nothing has happened. The Expert Committee, constituted by the Government, is examining all the related issues. (Time-bell) At the same time, they are trying to increase the rubber production in the North-East. Why? If the same situation continues, they will be forced to cut down their trees after 3-4 years. The Government should focus on sustaining the existing farming. That is the need of the day. We should increase our production. (Time-bell) The statement of the hon. Minister is not satisfactory. We want action. We do not want more committees. We do not want more discussions. We just want action. Thank you, Sir. (Ends)