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January 31, 2014 12:00 AM

Indian rubber manufacturers welcome Kerala government's buffer stock plan

ERJ Staff
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    ERJ staff report (BC)

    Kochi, India: The Indian rubber and tire industry has welcomed Kerala chief minister Oommen Chandy's statement that his provincial government was looking to procure natural rubber from the open market, reported PK Krishnakumar for the Economic Times. The government said it was always in favour of keeping a strategic reserve of rubber under a policy framework to meet exigencies.

    Rajiv Budhraja, director general of the Automotive Tire Manufacturers Association, said: "The move by the Kerala government vindicates our long-standing request for a buffer stock of natural rubber so as to minimise the vagaries of sharp volatility in prices witnessed in the last few years. However, instead of a knee-jerk reaction, a strategic reserve of natural rubber should be a part of an institutional framework."

    Niraj Thakkar, president of the All India Rubber Industries Association (AIRIA), said: "All the key issues and concerns of rubber stakeholders need to be addressed [as a] priority. [We advocate the formulation of] a National Rubber Policy. Such a policy document can help steer government policy and [the] creation of an environment which is conducive for all stakeholders. We are already in touch with [the Indian] Rubber Board and the government for working out the contours of the policy."


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    Full story from Economic Times

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