Rubber Invoice: Draft rubber invoice proposes one-time registration, removing of some archaic provisions


To advertise ease of doing enterprise and development of the sector, the draft rubber invoice has proposed a sequence of steps, together with substitute of periodic licensing with one-time registration, removing of permission requirement for possession of pure rubber and laying down clear procedures for inspection. The commerce ministry has proposed the repeal of decades-old legal guidelines on rubber and launched new laws that seeks to handle the challenges confronted by the sector and take away a number of the archaic provisions of current regulation to create a conducive setting for companies.

The ministry has put the draft Rubber (Promotion and Improvement) Invoice, 2022, on its web site for stakeholders’ views and options.

In an workplace memorandum, the Division of Commerce has stated it’s proposing to repeal the Rubber Act 1947 and introduce a brand new regulation.

Explaining the rationale behind the proposal to repeal the Rubber Act, the draft invoice has stated that in recent times, there have been widespread modifications within the industrial and financial state of affairs, particularly regarding growth in rubber and allied sectors.

“Due to this fact, it has turn into crucial to take away archaic provisions, create an setting conducive for simple conduct of enterprise, reorient features of the (Rubber) Board with equal give attention to upstream and downstream sectors and to contribute in the direction of making world-class rubber business,” as per the draft Rubber (Promotion and Improvement) Invoice.

The opposite new clauses proposed within the draft embody removing of provisions referring to import and sale of pure rubber (NR) and its buy within the home market by Rubber Board; particular provisions for creating and aiding new plantations and revising present ones; norms to advertise analysis, exports, human useful resource growth, ability growth in step with the wants of the business; and changing sure penal actions with a civil penalty.

The present regulation has sure archaic provisions together with the requirement of periodic licences for giant growers, sellers, processors, and producers; possession of NR with out licence invitations forfeiture and prosecution; provision for import and sale of NR within the home market by the Rubber Board, and contravention of norms invite prison legal responsibility with provisions of compounding.

An official stated that the Rubber Act 1947 was enacted at a time when whole NR manufacturing was 22,500 metric tonnes (MT) and the realm below cultivation was 75,000 hectares.

“At present, whole annual manufacturing is ready to achieve 8,00,000 MT in an space of 8,25,000 hectares. There’s a nice want to extend the full space of manufacturing to achieve self-sufficiency and minimise imports. There may be additionally the requirement to assist industries, significantly MSMEs, who’re into making merchandise within the non-tyre sector,” the official stated.

NR is likely one of the most versatile uncooked supplies utilized in business and finds a spot in about 40,000 merchandise worldwide. India is likely one of the few international locations that produce and devour NR in giant portions.

Until December 2021 this fiscal, India’s NR import and export stood at 4,07,930 MT and a couple of,939 MT, respectively. In the course of the interval, the manufacturing stood at 5,60,000 MT and consumption at 9,17,000 MT.

In 2020-21, the nation’s import and export was 4,10,478 MT and 11,343 MT, respectively. The manufacturing stood at 7,15,000 MT and consumption at 10,96,410 MT.

Globally, India is positioned at fifth place with regard to manufacturing and second in consumption.

There’s a large hole between manufacturing and consumption, which is resulting in an enormous surge in imports, apart from a fall in new planting and replanting of rubber, the official added.

The invoice additionally seeks to make the Rubber Board act as a facilitator somewhat than the regulator of the sector, with extra give attention to market growth and branding, high quality and testing, analysis, worth addition and export-oriented manufacturing.

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