hari yetta

CHAPTER – I

1.1. INTRODUCTION

Rubber is an elastic hydrocarbon polymer, which occurs as a milky

emulsion (known as latex) in the sap of a number of plants but can also be

produced synthetically. The major commercial source of the latex used to

create rubber is the Para rubber tree, Hevea brasiliensis (Euphorbiaceous).

This is largely because it responds to wounding by producing more latex.

Other plants containing latex include figs (Ficus elastica), euphorbia, and the

common dandelion.

General term for elastomer materials, independent from whether they

are made from natural or synthetic substances or combinations of both. The

term “rubber” in its modern technical engineer scientifically use always

stands for a manmade solid product as a result of a more or less industrial

manufacturing process.

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Rubber Production:

Tapping rubber trees, latex, collection and processing of raw rubber

many plants produce latex, which oozes from cuts and injuries as a milky

sap. Special cells called lactifiers produce latex. In general, latexes have a

biological function in herbivore defense and or laticifers are a dumping

ground for metabolic by – products or reservoirs of biosynthetic materials.

All latexes are emulsions, aqueous suspensions of insoluble materials, which

can include alkaloids, terpenes, resins, phenolics, proteins, sugars, and long

– chain hydrocarbons. Not all taxes are elastic; those that are contain long –

chain hydrocarbons. Some latex is collected for their resins or their alkaloids

(opium).

Rubber is coagulated, elastic latex. Plants that produce elastic latexes

are largely Neotropical. Commercial rubber is produced from latex of Hevea

brasiliensis. The waterproofing and elastic properties (rubber balls) of

various rubbers – producing plants were discovered by Native American

cultures, the Aztecs or earlier Mesoamericans, and South American tribes.

Originally collected from wild trees in South America, now 90% of

rubber production comes from plantations of rubber trees in Southeast Asia.

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1.2. PROFILE OF INDIAN RUBBER INDUSTRY

Kerala and the Kanyakumari district of Tamil Nadu together

constitute the traditional rubber – growing region in the country. The

traditional region accounted for as much as 87 percent of the total area of

573980 hectares cultivated with this crop as at the end of 2003 – 04. Small

holding sector, comprising one million units with the average size of half a

hectare, dominates the production sector by sharing as much as 88 percent of

area and 91% of production. Though size – constrained, more than 99

percent of total area in small holding sector is occupied by high yielding

cultivars and the sector is much ahead in adopting short – term productivity

enhancement measures. The good status of the dominant small holding in

adopting frontier technologies is a crucial factor determining the aggregate

productivity of NR in the country.

Though natural rubber is being possessed into different forms, in India

about 71 percent is processed as RSS grades. Latex concentrates (11

percent) and Block rubber (13 percent) is two other major forms.

3

To bridge the gap between production and consumption, India

produces synthetic rubber (SR) and reclaimed rubber (RR) also. In India,

presently there are four factories producing different grades of SR such as

styrene butadiene rubber (SBR), poly – Butadiene rubber (BR), nitrile

rubber, synthetic latex and EPDM. The requirements of other special

purpose grades of SR are met by imports. About 48 units produce reclaimed

rubber. Production of RR is sufficient to meet the domestic demand and

limited quantities are exported.

Among the 4791 licensed rubber goods manufacturing units in India,

a vast majority are small – scale operators consuming less than 100 tonnes

of NR per year. The 53 big units individually consuming more than 1000

tonnes of NR per year accounted for about 66 percent of the total

consumption of NR in the country during 2003 – 04. Unlike production,

which is characterized by a high degree of regional concentration, the

consumption takes place in a rather dispersed manner throughout the

country. Automotive tyre manufacturing sector accounts for 49 percent of

the total consumption of NR.

In the total consumption of elastomers (i.e., NR and SR) in India,

synthetic rubber (SR) holds less importance over NR. India’s consumption

of elastomer is characterized by a marked preference to NR. The country

consumes NR and SR in the ration 77.23 while the pattern the world over is

41:59.

Indian rubber plantation industry was export – oriented until late

1930s. Thereafter, owing to the expansion of Indian rubber goods

manufacturing industry domestic consumption of NR increased steadily and

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it went to the extent of outstripping the production and making the country a

net importer of NR since 1947. However, there have been a few exceptional

years, when consumption stood below production and NR became surplus.

The economic reform process being introduced by the Government of

India since 1991 has been a crucial factor determining the price of rubber in

the country. The prices of NR in the country during 2004 – 05 were on the

upswing. The increasing trend in the international market which began in

2002 is continuing.

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1.3OBJECTIVES OF THE STUDY

1. To analysis country wise export performance of rubber from India.

2. To study the role of Rubber Board in export of rubber.

3. To study the export promotion schemes available to exporters for

exporting rubber.

4. To offer suggestions for the better trade performance.

5. To study the EXIM policy related to rubber exports.

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1.4. NEED FOR STUDY

One of the main sources of achieving formable balance of payments

in our country is attained through export of demanded products. In this

regard export of rubber from India earnings a huge income to our exporter

and also makes our balance of payments in a favorable way. Rubbers are

traditionally grown in India in the southern part today India is the main

rubber producing in the world. India with its favorable climate and soil

condition for growing rubber – producing country.

Today rubber are not exported as more a wholesome product but it

goes within extensive value addition future promises a potential market for

Indian exporter with through open challengers of world trade organization.

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1.5. LIMITATIONS OF THE STUDY

1. This study was mainly based on secondary data

2. Trade secrecy is limiting factor.

3. Time and cost constraints.

Analysis could not be studied in depth, as it is the policy of the country to

keep such information confident.

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1.6 METHODOLOGY OF THE STUDY

The study of research methodology gives a research the necessary

training in collecting materials and arranging or gathering in a correct way.

SOURCES DATA

The main objective of the research study is “A study on export

performance of Rubber from India”. For this purpose Kerala was selected.

The study was conducted by using secondary data.

SECONDARY DATA

Secondary data are those, which have already been passed through the

statistical process.

The secondary data for the study were collected from the journals of

Rubber Board like Rubber and its Cultivation, Rubber export statistics and

the websites of Rubber Board.

SIMPLE PERCENTAGE

Simple percentage is the statistical tool used for analysis and

interpretation. Simple percentage analyses were carried out for the data.

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TOOLS APPLIED

The formula for estimating the linear trend projection can be given as

yc = a+b(x)

Yc = the variable considered for prediction

a + b = the parameter to be estimate

x = the time period ranging four.

AREA OF THE STUDY

The area of the study refers to Kerala.

The secondary data was collected from the period of 1999 – 2000 to

2005 – 2006.

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CHAPTER – II

2.1 REVIEW OF LITERATURE

THE HINDU BUSINESS LINE

1. Kottayam, Feb.1 2006

A Much-Wanted correction in international futures hammered

the domestic spot rubber market on Wednesday. Selling from dealers

at higher levels kept the prices under pressure while buyers preferred

to keep a low profile’s 4 ended at Rs 70 a kg both at Kottayam and

Kochi against Rs 80 a kg on Tuesday

2. Bullish trend resumes in rubber market

Our Correspondent Kottayam, Jan. 25 2006

The grade improved to Rs 77 a kg from Rs 76.50 and Rs 76.75 a kg

respectively at Kottayam and Kochi on fresh demand.

NMCE maintained the firm tend in rubber futures quoting the

February delivery contract at Rs 78.34 (78.21), March at Rs 79.74

(79.62), April at Rs 81.15(81.03) and May contract at Rs 82.32

(82.17) per kg for RSS4.

3. Kottayam, Feb.2. 2006

A sharp recovery in international indices strengthened spot

rubber prices on Thursday. The market improved on short covering

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and fresh buying as covering groups and purchase agents turned

active, reactive to the news on hectic buying in the Japanese futures.

4. Kottayam, Aug 25.2005

The domestic physical rubber rates recorded all-round

improvement on fresh buying and short covering. According to

sources, a leading tyre company bought sheet rubber even up to

Rs.55.75 a kg on Thursday.

Moderate buying from he north Indian and general rubber

goods sectors was visible in the main marketing centers. RSS 4

improved to Rs.55.50 against Rs.55.00 a kg on Wednesday.

5. Kochi, June 16, 2005

Natural rubber prices continued to slide with the RSS-4 (ribbed,

smoked sheet) grade touching Rs 61 a kg on Thursday, as monsoon

continued to be weak and tyre makers had very little demand.

But if the aims pick up momentum and continue fro3-4 day’s

occur the rubber growing areas, prices are likely to rise again, rubber

industry sources said.

The fall in rubber prices has come as a surprise to many of the

growers and traders who have been anticipating the prices to rise

during June, when tapping is affected by heavy rains. But prices are

ruling lower than last year and current international prices.

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6. Kottayam, June 23.2005

Spot rubber prices moved down on Thursday. Most of the

grades lost marginally in the absence of quantum buyers from major

consuming sectors though there was no considerable selling pressure

from dealers or growers. Sheet rubber RSS4 lost 25 paisa to close at

Rs 60.25 at Kottayam but was flat at Rs 60.50 a kg at Kochi.

The futures market turned weak even amidst promising

overseas indices. The July contract was traded at Rs 60.70 (Rs 61.23),

August Rs 60.70 (Rs 61.23), September Rs 58.50 (Rs 58.94) and

October at Rs 57 (Rs 57.60) per kg for RSS4.

7. New Delhi, Aug.27.2005

The Designated Authority in the Commerce Ministry has

recommended imposition of definitive anti-dumping duty on import of

certain rubber chemicals (MOR, PX13 and TDQ) from the EU, US,

China and Chinese Taipei.

In its final findings, notified recently, the Authority said the

products under consideration in this probe are three specific rubber

chemicals used in the manufacture of rubber products viz., anti-

degradedness PX13, accelerators MOR and antioxidant TDQ.

Even as the All India Tire Manufacturers’ Association (ATMA)

has contended that there is no such classification as ‘rubber

chemicals’, the classification of the subject chemicals into rubber

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chemicals is probably done on the basis of use of those chemicals

while there is no such classification in customs tariff.

The Authority is of the view that the products under probe are

three distinct yet same general category of rubber chemicals use din

the rubber industry. The domestic industry is same for these rubber

chemicals, which manufacturers all these chemicals in the same

manufacturing facilities.

The application for the investigation has been filed by NOCIL,

Mumbai; Bayer India Ltd, ICI Ltd and Marcher Ltd are the other

manufacturers of some of these products.

8. New Delhi, May 4, 2005

The Designated Authority in the Commerce Ministry has

initiated an anti-dumping probe on all imports if ethylene-propylene-

non-conjugated diene monomer (EPDM) rubber from the European

Union, the US, China and Brazil.

EPDM is a synthetic rubber use in automobile tyres and tubes,

cables and hoses and moulded items in automobile parts.

9. Kottayam, Feb.14.2005

According to sources, domestic market might attract exporters

as the international market rules by about Rs5 above the Indian price.

As the arrivals are also in a declining phase, any positive news

may trigger an up move in prices.

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The NMCE rubber turned almost steady on Monday. The

March contract was traded at Rs 52.03 (51.98), April contact at

Rs55.50 (55.48) and May contract at Rs 57.18 (57.05) per kg for

RS, 4.

The spot rubber rates per kg were as follows: RSS-4: Rs 50.75

(50.25), RSS-5: Rs49.75 (49), upgraded: Rs 48.75 (48.25), ISNR 20:

Rs 50 (49.75), and latex 60 per cent: Rs38 (38).

10.Kottayam, Feb.9, 2005

The spot rubber market continued to rule static, mirroring the

depressed sentiments affected by VAT.Chances of further fall in

prices are high

11.Kottayam, Dec.29, 2005

Inspired by extremely bullish international markets, domestic spot

rubber explored further highs on Thursday

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2.2. TYPES OF RUBBER

Natural rubber is a vital agricultural commodity used in the

manufacture of a wide range of products.

Its production from the rubber tree (systematic name: Hevea

brasiliensis) plays a major role in the socio – economic fabric of many

developing countries. Over 20 million families are dependent on rubber

cultivation for their basic source income.

These millions of people, mainly small growers many with holdings

of two hectares or less, are dependent upon Hevea for their livelihood. The

low prices paid for natural rubber contribute to rural poverty in many

countries, especially small holders in South East Asia where currency

turmoil has greatly diminished the purchasing power for essentials like

medicines. Estates are now less significant in most countries. An over view

of agronomic practices is available.

Products made from natural rubber, especially tyres engineering

components and latex products (used in the battle against AIDS and other

disease) are essential to modern life.

Development of the natural rubber industry during the last 100 years

has relied upon the injection of well – targeted research and development:

agronomic science, such as breeding to raise productivity, and physics,

chemistry and technology to support and expand a growing portfolio of

applications.

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The two types of rubber in common use today are natural and

synthetic. Natural rubber comes from the rubber tree (Hevea brasiliensis).

When a tree matures at the age of six or seven years, the latex is collected

from a diagonal incision in the tree trunk. The tapping process dose not

affect the health of the tree and the tree wound later heals itself. Synthetic

rubber is made by man from petrochemical feedstocks. Crude oil is the

principal raw material.

Where is natural rubber produced?

Today more than 90% of the natural rubber supply comes from

Southeast Asia. As rubber trees require a hot, damp climate, they grow only

in the “Rubber Belt” an equatorial zone that stretches around the world. In

1876, the English, in recognition of the difficulties of securing quality rubber

from the jungle, hit upon the idea of growing rubber on plantations. From

their efforts, the cultivated rubber tree plantations of Southeast Asia and

Africa have developed.

What accelerated the development of synthetic rubber?

The United States was cut off from virtually all of its sources of

natural rubber in the Pacific during the World War II. In order to meet the

nation’s needs for this vital material, the government built synthetic rubber

plants and the industry operated them. Synthetic rubber production jumped

from 8,000 tons in 1941 to 820,000 tons in 1947. After the war, the

government sold the plants to the industry.

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How is synthetic rubber produced?

General – purpose synthetic rubber has its origin in two gases:

butadiene, a by – product of petroleum refining, and styrene, captured either

in the cooking process or as petroleum refining by – product. When the two

are mixed in the presence of soapsuds in a reactor, liquid latex results. The

dry rubber in this milky liquid is then coagulated into crumbs, washed,

dried, and baled ready for shipment.

Does the industry utilize more natural or synthetic rubber in its

manufacturing process? Approximately 70% of all rubber used is synthetic.

How many chemical types of rubber are there?

There is only one chemical type of natural rubber. However, there are

approximately twenty different chemical types of synthetic rubber, and

within each type there are many distinguishable grades. The different types

of rubber, each with its own properties and advantages, allow industry to

choose the rubber that most clearly meets the demands of an intended use.

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2.3. INDUSTRY STATUS

1. Production

Grew by an average of 3.3% per annum (1985 – 1995); form 145,900

tons to 199,600 tons of raw latex.

Planted area increased by 1.4% (1985 – 1995); form 80,700 has in

1985 to 92,000 has in 1995 because of limited replanting.

Average yield grew at 2% from 1810 kilos / ha. In 1985 to 2170 kilos

of raw latex / ha in 1995.

Annual sales of rubber products manufactured rose by an average of

16.5% (1991 – 1995); from p 5.1B to P9B.

2. Export / Import

The industry exports about 0% of its natural rubber production.

Exports increased from US$ 10 million in 1986 to US$ 34 million in

1996. Malaysia, China and Singapore are the country’s major markets.

A Philippines import of natural rubber is minimal recorded at 572 tons

in 1996. Imports could increase in coming years with the decline in

domestic rubber production and establishment of new rubber

factories.

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2.4. PROCESSING OF RUBBER

FABRICATION

The fabrication of articles from latex concentrate and from dry rubber

(that is rubber which is in the form of bales of either natural or synthetic

rubber) is completely different, although both involve shaping and

vulcanization and some of the shaping process are common to both

materials, but in general the latex and dry rubber industries are totally

distinct. This section refers entirely to dry rubber processing. Latex

fabrication is discussed elsewhere.

Fabrication of most rubber products demands three main processes:

Mixing

Shaping (and building, if a composite article is being made)

Vulcanization

MIXING

The mixing process is usually performed in heavy internal mixers,

capable of processing 200 kg batch weight in two minutes. This process has

two functions: Firstly, to soften the rubber (this is often known as

mastication) and secondly, to admix the rubber with the compounding

ingredients, which may include fillers, vulcanizing agents, protective agents

and blends with other rubbers (which are usually synthetic rubbers).

This technique is known as compounding. After mixing, the

compounded rubber is plastic and is now ready to be shaped. This is done in

a variety of ways and is frequently combined with vulcanization in which

20

the rubber undergoes a chemical reaction at a high temperature, becoming

converted from the plastic state into a strong, highly elastic material.

SHAPING

The most common process is by moulding under pressure in a heated

mould in which the vulcanization also occurs. There are three important

variants of the process: compression, transfer and injection moulding. Other

important shaping techniques include extrusion and calendaring. Bonding of

rubber to metal (or thermoplastic / glass fabric, etc) normally takes place as

part of the moulding process. The metal component will require pretreatment

to clean it and the application of a bonding agent.

COMPRESSION MOULDING

A blank of appropriate weight is shaped in a steel mould within a

heated press. This process makes the majority of rubber articles. It is

Cheap

Rapid

Capable of long or short runs

Gives a fair degree of precision if care is taken

High rates of production are possible in multi-daylight presses in which

downtime is reduced to a minimum by using alternately each of two separate

sets of moulds, mechanically handled.

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TRANSFER MOULDING

A slug of rubber compound is put into the upper cavity of the

transfer mould. When placed in the press the rubber is squeezed through a

small aperture to fill the second cavity, having the require shape, in the

rubber is vulcanized. This method is used for precision work, which justifies

the high mould cost and relatively slow throughput. Short runs are feasible

and the method is particular useful for components having metal inserts

(such as engineering components)

INJECTION MOULDING

This is a semi-continuous process in which rubber is extruded

from a heated barrel of a screw or ram machine through a nozzle. The work

of extrusion produces a further rise of temperature, before the rubber is

forced in to a heated mould where the rubber is vulcanized. Because the

rubber reaches the mould at a high temperature, vulcanization times are

short and thick articles are homogeneously vulcanized. The high capital cost

is justified by the use of the machine for long runs of articles of good

quality, particularly those which are difficult to mould by compression

moulding.

EXTRUSION

During extrusion compounded rubber is passed from a short screw

extruder through a die of appropriate shape. Vulcanization is a separate

extruder through a die of appropriate shape. Vulcanization is a separate

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process, and can be performed in a variety of ways: (i) batch wise in a steam

or air autoclave, or (ii) continuously in steam or hot air; of (iii) in a bath

containing a eutectic mixture of molten metal salts or in a fluidized bed.

Simple or complex sections, either solid or sponge, may be extruded.

Extrusion is used for the manufacture of hose. Weather-strip seals for

automobiles and cables. Parts of tyres are also extruded, notably the side

walls.

CALENDARING

In the calendaring process, rubber is passed through a three-or four-

roll calendar either to produce a sheet of controlled thickness or to force the

rubber into close contact with a textile or metal cord. Calendaring

infrequently followed by a building process, .e.g. Sheet may be built up into

a rubber roller or the rubberized textile may be built up into a carcass for a

tyres or conveyor belt. Vulcanization is then performed in hated presses of in

autoclaves.

FINISHING

Most moulded goods will require some form of finishing. Such as

there removal of flash.

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2.5. ISO-9000 CERTIFICATION – AN OUTLINE

ISO 9000 is the International standard for establishing a system for

achieving the specified quality target for the goods and services offered by

an organization. ISO stands for International Organization for

Standardization. The ISO 9001:2000 and 9004:2001, the new international

standards, were published on 15 December 2000. The International

Standards ISO 900:1994 versions are not valid with effect from December

15, 2003.

ISO 9000 certification is not a statutory requirement but a declaration

by the organization concerned on the resources and procedures adopted by

the organization to meet the customer requirements both stated and implied.

The international organization for standards has accredited a number of

international organizations for system certification under the ISO 900

standards. There are also a number of consultancy organizations the provide

assistance to those organizations desirous of obtaining certification under the

standard, for developing documented system certification under the

standard, for developing documented system procedure and for providing

technical assistance for implementing and managing the systems.

The standard defines the management responsibility the systems and

requirements for compliance by the organization concerned. The most

important document is the quality manual, which defines the quality policy.

The quality policy of an organization is a vision end mission statement of

the organization. The customer requirements are analyzed and quality

system procedures and quality plan are reviewed and revise, if necessary, to

24

meet the stated and implied requirements of the customers. But the

procedure of document and data control defines the manner in which the

documented system will be revised.

The standard has been evolved based on the eight quality management

principles defined below:

1) Quality Management Principle 1

Customer Focus- Organization depend on their customers and

therefore should understand current and future customer needs, should meet

customer requirements and strive to exceed customer expectations.

2. Quality Management Principle 2

Leadership- Leaders establish unity of purpose and direction of the

organization. They should create and maintain the internal environment in

which people can become fully involved in achieving the organization’s

objectives.


Involvements of people - People at all levels are the essence of an

organization and their full involvement enables their abilities to be used for

the organization’s benefit

.


Process Approach- A desired result is achieved more efficiently when

activities and related resources are managed as a process.

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4) Quality Management Principle5

System Approach to Management – Identifying, understanding and

managing interrelated processes as a system contributes to the organization’s

effectiveness and efficiency in achieving its objectives.


Continual Improvement – Continual improvement of the

organization’s overall performance should be a permanent objective of the

organization.


Factual approach to decision making – Effective decisions is based on

the analysis of data and information.


Mutually beneficial supplier relationships – An organization and its

suppliers are interdependent and a mutually beneficial relationship enhances

the ability of both to create value.

An organization, which desires to be certified under the international

standard, is required to develop and implement document procedures to

cover every activity of the organization. Depending on the size and

multiplicity of activities involved the organization may appoint a consultant

or constitute a team for developing the system procedures required by the

standards. Documented procedures are to be developed and established

26

essentially for document control, records, control, non – established

confirming product, auditing, corrective action and preventive action besides

the quality manual. The minimum period of operating the system before

obtaining certification under the standard is ninety days. Regular internal

audit is an integral part of the system to ensure proper compliance by all

concerned. Selection of the certifying body is a very important activity as the

customer satisfaction and customer rating of an organization would depend

on reputation of the certification body. The certification bodies generally

conduct a surveillance audit of the system to verify whether it satisfies all

the requirements of the standard. Certificates are usually issued for a period

of three years and the certification body does audit the system, half yearly to

verify whether the system as certified is in operation in the organization.

27

CHAPTER – III

ABOUT RUBBER BOARD

Introduction

The Rubber Board is a statutory body constituted by the Government

of India, under the Rubber Act 1947, for the overall development of the

rubber industry in the country.

3.1. GENESIS OF THE RUBBER BOARD

The British introduced commercial cultivation of natural rubber in

India, although the experimental efforts to grow rubber on a commercial

seals in India were nitrated as early as 1873 at the Botanical Garden,

Calcutta. The first commercial Hevea plantations in India were established at

Thallekadu in 1902. The government during the Second World War period

had realized the importance of rubber production in India can a strategic and

security reason. The rubber growers in India were strenuously encouraged to

produce the maximum rubber required for this prosecution of war. After the

war, there were growing demands from the growers for setting up a

permanent organization to look after the interests of the industry. Thereupon

the government set up an ad-hoe committee in 1945 to study the situation

and to make appropriate recommendations. On the recommendation of this

ad-hoe committee, the government passed the Rubber (Production and

Marketing) Act, 1947. On 18th April 1947, and the “Indian Rubber Board”

was constituted forthwith. The Rubber (Production and Marketing) Act,

1954 amended the name of the Board as “The Rubber Board”.

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3.2. LEGISLATIVE ENACTMENTS ON RUBBER

As noted above, a consideration of the post was natural rubber

scenario prompted the Government of India to pass the Rubber (Production

and Marketing) Act, 1947 to provide for overall promotion and development

of the sector under its guidance and control. As envisaged in the Act, the

Indian Rubber Board was set up as the statutory organization responsible for

assisting the government in implementation of the various provisions of the

Act. The Act that came into force on April 18 th 1947 has since undergone

many amendments.

The Rubber production and Marketing (Amendment) Act of 1954

which took effect on August 1st 1954 made some important changes in the

constitution of the Board now renamed as The Rubber Board.. It clearly

defined the role of the Board in the development of the industry and in

formulating and implementing necessary research and development

programs. This was followed by notification of the Rubber rules, 1995

laying down guidelines for the Board to follow in carrying out the purposes

of the Act. The rules have been subjected to need based amendments from

time to time.

The Rubber (Amendment) Act of 1960 made certain alterations in the

rate and procedure of collection of cuss on rubber. The Rubber

(Amendment) Act of 1982 provided for the Central Government to appoint a

part time or whole time Chairman for the Board and, if necessary, an

Executive Director for exercising such powers and performing such duties as

may be prescribed or delegated to him by the Chairman. The 1994

Amendment refixed the maximum rate of cuss that can be levied on rubber.

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3.3 FUNCTIONS OF RUBBER BOARD

The statutory functions of the Rubber Board are:

1. To promote by such measures as it thinks for the development of the

rubber industry.

2. Without prejudice to the generality of the foregoing provision, the

measures referred to therein may provide for:

a. Undertaking, assisting or encouraging scientific, technological and

economic research;

b. Training students in improved methods of planting, cultivation,

maturing and spraying;

c. Supply of technical advice to rubber growers;

d. Improving the marketing of rubber;

e. Collection of statistics from owners of estates, dealers and

manufacturers;

f. Securing better working conditions and provisions for improvement of

amenities and incentives for workers;

g. Carrying out any other duties, which may be vested in the Board as

per rules made under this Act.

3. It shall also be the duty of the Board;

a. To advise the Central Government on all matters relating to the

development of the rubber industry, including the import and export

of rubber;

b. To advise the Central Government with regard to participation in any

international conference or scheme relating to rubber;

c. To submit to the central Government and such other authorities as

may be prescribed half yearly reports on its activities and the working

of Act, and

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d. To prepare and furnish such other reports relating to the rubber

industry as may be required by the central Government from time to

time.

3.4 CONSTITUTION

The Rubber Board functions under the ministry of commerce

and industry, Government of India. The chairman of the Board, who is

appointed by the Government of India, is the principal executive officer

responsible for the proper functioning of the Board. Implementation

office responsible for the proper functioning of the Board,

implementation of its decisions and decisions and discharge of its duties

under the rubber Act. There are 25 other members of the Board

consisting of;

1. Two members to represent the state of Tamil Nadu, One of

when shall be a person representing the rubber production

interests.

2. Eight members to represent the state of kerala. Six of whom

shall be persons representing the rubber producing interest;

three of such six being persons representing the small growers;

3. Ten members to be nominated by the central government of

whom two shall represent the manufactures and four labour.

4. Three members to parliament of whom two shall be elected by

the House of the people and one by the council of states.

5. The Rubber Production Commissioner (ex-officio) and

6. The Executive Director (ex-officio).

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One of the members is elected as Vice-chairman on an annual basic.

The Board meets periodically for transacting business. The Board has a

Secretary appointed by the Central Government.

Sub committees are formed to scrutinize various matters and make

recommendation to the Board. Besides the Executive Committee and the

Research and Development Committee (statutory committees) the Board has

5 other committees; (1) Planting committee (2) Statistics and Import /

Export Committee (3) Market Development Committee (4) Labour Welfare

Committee and (5) Staff Affairs Committee.

3.5. ORGANIZATIONAL SET UP AND CONTROL

The chairman who is the administrative head of the Board exercises

control over all the departments. The activities f the Board is classified under

eight departments:

Administration, Finance & Accounts (F & A)

Rubber Production (RP)

Research (RRII)

Processing & Product Development (P & PD)

Statistics & Planning (S & P)

Training & Technical Consultancy (T & TC) and

Licensing & Excise Duty (L & ED)

Publicity and Public Relations (P & PR) Division. Vigilance Division

and Internal Audit Division although grouped under Administration and

32

Finance & Accounts Department, for general purposes, function directly

under the chairman.

The Board has its headquarters complex located at Kottayam in

Kerala State. The Chairman Office together with the central offices of

Administration. Finance & Accounts. Rubber Production. Statistics &

planning and Licensing and Excise Duty department’s function in own

building in the municipal town of Kottayam. The Rubber Research Institute

of India (RRII) the Research Development of the Board, is situated 7 km

eastwards in the suburban village of Puthupally. The Institute is also housed

in Board’s own building, which is set amidst a 28 ha Rubber Experiment

Station. The Training and Technical Consultancy Department of the Board is

also housed on an adjacent plot of land in a picturesque building.

33

EXHIBIT-3.1

3.6. ORGANIZATIONAL CHART

34

MINISTRY OF COMMERCE(Govt. of India)

TRAINING & TECHNICAL CONSULTANCY DEPT

PROCESSING & PRODUCT DEVELOPMENT DEPT

RUBBER RESEARCH INSTITUTE OF INDIA

CHAIRMAN

RUBBER PRODUCTION DEPT

RUBBER BOARD (26 Members)

STATISTICS & PLANNING DEPT

LICENSING & EXCISE DUTY DEPT

FINANCIAL & ACCOUNTS DEPT

ADMINISTRATION DEPT

3.7. MAJOR DEVELOPMENT SCHEMES AND

ACTIVITIES

1. Rubber plantation development scheme

2. Production and distribution of improved planting materials.

3. Advisory and extension service to growers.

4. Demonstration of scientific planting and production.

5. Supplies of equipments and materials requiring popularization among

growers.

6. Identification of non – traditional areas suitable for rubber cultivation

and planning and undertaking special activities for promotion of

rubber cultivation in such areas.

7. Schemes for improvement of quality of smallholder rubber.

8. Block planting, group planting and such other schemes for promotion

of rubber cultivation among Scheduled Caste / Scheduled Tribe

Members.

9. Promotion of activities of the self – help groups (Rubber Producer’s

Societies) among small rubber growers.

10.Training of rubber tapers.

The central office of the RP department function at Board’s

headquarters office. The field services are rendered through Zonal Offices /

Regional Offices and Field Offices spread over all important areas having

rubber cultivation. Other field establishments are Nurseries. Demonstration

and Training Centers and Taper’s Training Schools.

35

3.8. RUBBER RESEARCH INSTITUTE OF INDIA

The Rubber Research institute of India (RRII) established in 1955 is

located on a hillock in the eastern suburb of Kottayam, eight Kilometers

from the town. There are nine research disciplines, nine Regional Research

Stations, two Hevea Breeding Sub-stations and a Central Experimental

Station attached to the RRII. The Institute is headed by the Director

(Research).

Major Divisions

1. Agricultural Economics

2. Agronomy / Soils

3. Biotechnology / Genome Analysis

4. Botany / Clone Evaluation

5. Germplasm

6. Exploitation studies

7. Plant Pathology

8. Plant Physiology

9. Rubber Chemistry, Physics and Technology

Each division function under a Deputy Director / It Director.

Other Facilities: Library / Documentation, Agricultural Statistic, Computer,

Instrumentation, Maintenance wing, Art / Photography.

36

3.9 ABOUT RUBBER RESEARCH INSTITUTE OF INDIA:

The Rubber Research Institute of India (RRII) was established in

1955. The Institute has attained a prestigious position in the international

rubber scenario through its research contributions. RRII is a member of the

International Rubber research and Development Board (IRRDB) and

actively participates in many international research programmes. RRII has

played a significant role in India achieving the highest productivity among

the major rubber producing countries.

LOCATION

The headquarters of RRII is located on a hillock, 8 km east of

Kottayam town in Kerala State with a research farm attached to it. The

nearest airport is at Nedumbassery, Kochi, 100 km north.

The Central Experiment Station of the Institute is located at

Chethackal (Ranni) 50 km away from Kottayam. To conduct location

specific research, the Institute has established a research complex for North

East India with headquarters at Agartala and having regional research

stations at Agartala in Tripura. Guwahati in Assam. Tura in Meghalaya

(Maharashtra), Kamakhyanagar (Orissa), Nagrakatta (West Bengal), Sukma

(Chattisgarh), Paraliar (Tamil Nadu), Nettana (Karnataka) and Padiyoor

(Kerala), Soil Kozhikode, Thrissur, Muvattupuzha, Palat, Kanjirappally,

Adoor and Nedumangad, Mobile units for soil and leaf analysis are available

at the headquarters. Tripura, Kozhikode, Muvattupuzha and Adoor.

37

AREA OF RESEARCH AND PRIORITIES

The major disciplines of RRII at its headquarters are: Agronomy and

Soils; Biotechnology; Botany; Genome Analysis; Germplasm; Plant

Pathology; Plant Physiology, Exploitation Studies, Rubber Chemistry,

Physics and Technology; and Agricultural Economics. The research

supporting sections include Library, Instrumentation, Statistics, Computer

and Art / photography. The research priorities are:

Improvement in production and productivity through:

Evolving and introducing location specific high yielding clones

Molecular biology and genetic engineering

Integrated approaches to reduce cost of production and improve quality

Competitiveness through:

Efficient field management systems to reduce immaturity

period.

Introducing appropriate rubber based farming systems in

different agro climatic regions.

Exploitation systems to reduce tapping cost.

Optimization of plant protection schedules.

Molecular approaches in plant disease control.

Use of alternative sources of energy for processing.

On – farm and shop floor protocols to improve quality of

processed rubber.

Studies on modification of NR and on polymer blends.

38

Research support for extension of rubber cultivation to non – traditional

areas by:

Selection and breeding of location specific clones.

Perfecting nutrient management and exploitation schedules.

Designing rubber based systems integrating region specific

socioeconomic aspects.

Investigating all aspects of post harvest technology, product

development and marketing.

3.10 MAJOR RESEARCH CONTRIBUTIONS

Instrumental in India achieving the highest productivity among the

major NR producing countries.

Release of RRII 105, the outstanding rubber clone.

Fifteen clones with very high yield potential in the pipeline of which

five have been included in the category III of planning material

recommendation.

Agro technology for rubber production in non-traditional areas.

Development of transgenic plant through genetic engineering.

Plant protection systems for all diseases.

Management of major pests of rubber and allied crops.

Location specific and clone specific exploitation system.

Development of Diagnosis and Recommendation Integrated fertilizer

recommendation system.

39

Agro management techniques and rubber based farming system for

sustainable agriculture.

Expertise in ancillary products like rubber wood, honey, rubber seed

oil, etc.

Pilot plant for production of epoxidised NR and development of other

modified forms.

Formulations and processes for different rubber products.

Alternative coagulants for latex and improved drying system.

Semiautomatic cleaning machine for low-grade sheet rubber.

Over one thousand five hundred research papers published in leading

national and international scientific journals.

3.11 IMPORT POLICY

Natural rubber (NR) can be imported in India free of license

from 1st April 2001 of prevailing import duty. They basic import duty

effective form 9th January 2004 is 20 percent for all forms of NR latex for

which it is 70 percent. As per provisions of GATT 1995, EACH WTO

member country is bound to limit is import duty within a ceiling, called

bound rate, which was fixed by each member country for different product

lines and notified in its national schedule submitted to the WTO in 1994.

The bound rate committed by India is 25 percent for all forms on NR latex

for which India did not commit any ceiling on import duty. Import of NR in

India during the period form 10th December 2001 to 5th August 2004 was

permitted only through the customs port of entry was removed with effect

from 6th August 204. The following are the various channels through which

NR can be imported to the country:

40

1. Open channel

This is the general channel through which NR can be imported

Importer has to pay the prevailing import duty (called MFN tariff). The

MFN tariff effective from 9th January 2004 is 20 percent for all for all forms

of NR except NR latex for which it is 70 percent. The special additional duty

(SAD) levied at the rate of four percent stands withdrawn with effect from

9th January 2004.

2. Bangkok Agreement

The Bangkok Agreement singed between India, China, South korea,

Sir Lanka and Bangladesh in 1976 provides for concession on import duty

(called preferential import duty) for trade between these countries Notably,

Thailand is not a signatory to the Agreement. The preferential import duty

effective form 9th January 2004 is India under provisions of Bangkok

Agreement is 10 percent for all forms of NR except NR latex for which it is

40 percent.

3. Duty Entitlement Pass Book (DEPB) Scheme

Under Duty Entitlement Pass Book (DEPB) Scheme, Government

provides credit (called DEPB credit) to exporters at rates fixed for different

products exported. The exporter can use the DEPB credit entered in his

passbook for payment of customs duty for further imports made under

DEPB scheme. DEPB scheme introduced by the Government of India under

the EXIM policy for 1997-2002 confined to products not coming under the

“Negative list” of imports. Since NR was in the “negative list” of imports till

41

31st March 2001, it was not importable through the DEPB scheme. The

removal from the “Negative list” on 1st April 2001 automatically made NR

importable under the DEPB scheme. ‘Though import undertaken under the

DEPB scheme involves payment of full customs duty, it is considered as a

duty free channel at the operational level.

4. Duty Exemption Entitlement certificate (DEEC) or Advance

Licence Scheme

Duty Exemption Entitlement Certificate (DEEC), popularly

called Advance Licence, facilitates duty-free imports of raw materials in

advance against commitment on export of manufactured products.

Against each export product, importable quantity of different inputs is

notified in the Standard Input Output Norm (SION) published by the

Government of India. DEEC is issued subject to fulfillment of time-

bound export obligation. Normal validity of DEEC is 18 months after

issue and it could be extended twice for durations of six-months each.

Government of India had put a ban on issue of DEEC for importing NR

into the country from 20th February 1999 with view to checking the

excess supply in the domestic market. The ban was lifted on 3 rd July

2003.

5. Duty-Free Replenishment Certificate (DFRC)

Duty-Free Replenishment Certificate (DFRC) is a variant of DEEC.

DFRC is a post-export scheme for duty-free import of the inputs used in

the manufacturing of the products exported. Licence for duty-free

import is given based on total annual exports instead of each

consignment.

42

6. Scheme for 100 percent EOUs and units in SEZ/EPZ

The 100 percent Export- Oriented Units (EOUs) and the

manufacturing units, which operate in, Export processing Zones (EPZs)

and Special Export zones (SEZs) can import NR free of duty.

3.12 EXPORT OF RUBBER PRODUCTS

Among the world rubber economies. India’s performance

reached unprecedented levels in production and consumption. India

occupies fourth place in production and consumption in the

international level.

India’s trade depends considerable on the import and export of rubber

related products. Manufactured goods remained the main item in

imports of rubber products, while tyre & products accumulated a major

share in export from India.

EXPORT PROMOTION MEASURES

Rubber Board is the designated agency for export promotion of

natural rubber. Beside issuing RCMC (registration cum membership

certificate) and COO (certificate of origin), the Board provides

assistance to promote export of natural rubber and related products.

43

TABLE –4.1

STATE WISE TOTAL AREA AND PRODUCTION OF NATURAL RUBBER IN

INDIA DURING 2004-2005

S.NO STATE/TERRITORY PRODUCTION

(TONNES)

% SHARE

1. Traditional region

kerala 655135 92.06

Tamil Nadu 22520 3.16

Sub total 677655 95.22

2. Non traditional region

a. North Eastern States

Tripura 12755 1.79

Assam 2580 0.36

Meghalaya 2812 0.40

Nagaland 396 0.06

Manipur 188 0.03

Mizoram 89 0.01

Arunachala Pradesh 448 0.01

Sub total 18868 2.65

b. other states

Karnataka 14070 1.998

Andaman & Nicobar Islands 389 0.05

Goa 511 0.07

Maharastra 46 0.01

Orissa 40 0.01

West Bengal 71 0.01

Andra Pradesh 0 0.00

44

Sub Total 15127 2.13

Grand Total 711650 100

Interpretation:

The above table shows state wise production and natural rubber in

India (2003-04). In traditional region Kerala is a largest natural rubber

production area with a share of 3.16%.In non traditional region Tripura

ranked first place with a share of 1.79%. In other state Karnataka placed the

first with the share of 1.98%. West Bengal emerged as the last place with the

share of 0.01%.

45

TABLE-4.2

SHARE OF MAJOR COUNTRIES IN WORLD

PRODUCTION OF NATURAL RUBBER (2001-2005)

NAME OF

COUNTRY

2001 2002 2003 2004 2005

Thailand 34.90 32.00 35.62 36.00 34.35

Indonesia 22.30 22.17 22.20 22.45 24.00

Malaysia 13.78 12.17 12.12 12.35 13.56

India 9.35 8.17 8.73 8.87 8.61

China 6.60 6.4 6.37 6.00 5.63

Vietnam 4.35 4.57 5.06 4.73 4.81

Liberia 1.56 1.48 1.50 1.37 1.35

Brazil 1.30 1.21 1.21 1.17 1.13

Sri Lanka 1.30 1.19 1.25 1.15 1.09

Philippines 1.00 0.97 1.03 1.05 0.92

Cambodia 0.63 0.58 0.61 0.57 0.55

Nigeria 0.81 0.62 0.60 0.47 1.46

Other

Countries

2.12 7.93 3.70 3.82 3.54

Total 100.00 100.00 100.00 100.00 100.00

46

Interpretation:

There were around fifteen countries to which production of natural

rubber producing in the world. Thailand was the largest natural rubber

producing country during the five year project from 2000-04.Its share in the

world natural rubber production has been between 34.90 and 36.00%.

Indonesia ranked second with its share ranging between 22.305 and 24.00%.

Malaysia occupied the third place with a share of 13.56%.

India ranked fourth among the major producer during the five-year

project from 2001-2005. Its share ranking between 8.61% and 9.35%. China

had emerged has fifth place. It shares ranging between 6.00% and 6.60%

during the five-year project.

47

TABLE –4.3

VALUE OF NATURAL RUBBER IMPORTED FROM

VARIOUS COUNTRIES

Countries 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

China 17 767 - 2214 294 1119

Indonesia 27960 181686 167159 330766 699837 1028083

Malaysia 90242 566886 277285 1062183 1547563 540487

Myanmar 6926 35536 2091 10487 29284 176637

Singapore 18177 62030 35129 12808 28398 65398

Sri Lanka 13774 22253 17988 20402 146269 121370

Thailand 87944 502364 401996 632631 1715954 550728

Vietnam 30736 40077 64761 84650 102830 245762

Others 28057 33048 26595 45250 20661 15541

Total 303833 1444647 993004 2201391 4291090 2745125

Interpretation:

The above table shows the value of natural rubber from various

countries. There are about 9 countries importing rubber. China has the least

record of importing rubber. Indonesia imports the maximum amount of

rubber amounting to 1028083 tonnes.

48

TABLE-4.4

TYPE WISE EXPORT OF NATURAL RUBBER

TYPE 2001-02 2002-03 2003-04 2004-05 2005-06

RSS graders 6199 43688 38951 24028 35187

Latex concentrates 82 6927 17125 10496 24153

Solid Block rubber 714 4637 19807 11558 13396

Others 0 59 22 68 1094

Total 6995 22311 75905 46150 73830

Interpretation;

The above table shows type wise export of natural rubber. The ‘Latex

concentrates’ type has wide fluctuation in the years 2003-2005. The RSS

graders and solid block rubber has an increasing trend.

49

TABLE-4.5

EXPORT OF NATURAL RUBBER TO CHINA

Year Quantity Percentage

2001-02 665 0.75

2002-03 13314 15.09

2003-04 31226 35.39

2004-05 16485 18.68

2005-06 26521 30.09

TOTAL 88211 100.00

Interpretation:

The above table shows the export of natural rubber to China. There is

a fluctuation in the year 2002-03 and 2004-05. The highest amount was

exported in the year 2003-04 with an amount of 31226 and the least was

exported in the year 2001-02 with an amount of 665.

50

EXHIBIT-4.1


51


Year Y X X2 XY

2001-2002 665 -2 4 -1330

2002-2003 13314 -1 1 -13314

2003-2004 31226 0 0 0

2004-2005 16485 1 1 16485

2005-2006 26521 2 4 53042

TOTAL 88211 0 10 54883

Y = a +bx, n = 5

A = y = 88211 = 17642.2

n 5

b = xy = 54883 = 5488.3

x2 10

y =17642.2+5488.3x3

= 17642.2+16464.9

= 34107.1

52

TABLE-4.6

TREND PROJECTED FOR EXPORT TO CHINA

Year Trend

06-07 34107.1

07-08 39595.4

08-09 45083.7

09-10 50572.0

10-11 56060.3

Interpretation:

While projecting the trend line for the export of rubber to China. It

shows a positive trend and hence the quantity of export will have a rise in

exports.

53

0

10000

20000

30000

40000

50000

60000

2006-07

2007-08

2008-09

2009-2010

2010-2011

Year

quan

tity

tonn

es

trend

EXHIBIT-4.2

TREND PROJECTED FOR EXPORT TO CHINA

54

TABLE-4.7

EXPORT OF NATURAL RUBBER TO GERMANY

YEAR AMOUNT PERCENTAGE

2001-02 10 0.08

2002-03 1375 11.16

2003-04 2469 20.05

2004-05 2779 22.54

2005-06 5680 46.35

TOTAL 12313 100.00

Interpretation:

The above table shows the export of natural rubber to Germany. There

is an increasing trend. The least level was exported in the year 2001-02 with

a percentage of 0.081 and the highest level was 46.35%.

55

EXHIBIT-4.3

EXPORT OF NATURAL RUBBER TO GERMANY

56

EXPORT OF RUBBER TO GERMANY

YEAR Y X X2 XY

01-02 10 -2 4 -20

02-03 1375 -1 1 -1375

03-04 2469 0 0 0

04-05 2779 1 1 2779

05-06 5680 2 4 11360

TOTAL 12313 0 10 12744

Y= a+bx n=5

A= y =2462.6

N

B = XY =1274.4

X2

Y =2462.6+1274.4(3)

=2462.6+3823.2

=6285.8

57

TABLE 4.8

TREND PROJECTED FOR EXPORT TO GERMANY

Year Trend

06 - 07 6285.8

07 - 08 7560.2

08 - 19 8834.6

09 - 10 10109.0

10 -11 11383.4

Interpretation:

While projecting the trend line for the export of rubber to Germany. It


exports

58

EXHIBIT-4.4

TREND PROJECTED FOR EXPORT TO GERMANY

59

TABLE – 4.9

EXPORT OF NATURAL RUBBER TO NEPAL

Year Amount Percentage

2001 – 02 727 11.05

2002 – 03 1267 19.26

2003 –04 1798 27.35

2004 – 05 1585 24.09

2005 – 06 1201 18.25

TOTAL 6578 100.00

Interpretation :

The above table shows the export of natural rubber to Nepal. It shows

a fluctuation in the year 2005 –06.The least amount was exported in the year

2001– 02 with a percentage of 11.05 %.And the highest amount was in the

year 2005 –06 of 18.25 %

60

EXHIBIT-4.5

EXPORT OF NATURAL RUBBER TO NEPAL

61

EXPORT OF RUBBER TO NEPAL

Year Y X X2 XY

01 –02 727 -2 4 -1454

02 –03 1267 -1 1 -1267

03 – 04 1798 0 0 0

04 –05 1585 1 1 1585

05 – 06 1201 2 4 2402

TOTAL 6578 0 10 1266

Y= a+bx n=5

A= y = 6578 = 1315.6

N 5

B = XY =1266 = 126.6

X2 10

Y = 1315.6 + 126.6 X 3

= 1315.6 + 379.8

= 1695.4

62

TABLE – 4.10

TREND PROJECTED FOR EXPORT TO NEPAL

Year Trend

06 –07 1695.4

07 – 08 1822.0

08 – 09 1948.6

09 –10 2075.2

10 – 11 2201.8

Interpretation:

While projecting the trend line for the export of rubber to

Nepal. It shows a positive trend and hence the quantity of export will

have a rise in exports

63

EXHIBIT-4.6

TREND PROJECTED FOR EXPORT TO NEPAL

64

TABLE – 4.11

EXPORT OF NATURAL RUBBER TO SPAIN

Year Quantity (tonnes) Percentage

2001 –02 10 0.13

2002 – 03 2689 27.69

2003 – 04 3222 33.18

2004 – 05 2153 22.17

2005 – 06 1634 16.83

TOTAL 9708 100.00

Interpretation

The above table shows the export of Natural rubber to Spain. There is

a fluctuation in the year 2004 – 05 with a percentage of 33.18 in 2003 – 04

to a percentage of 22.17 in 2004 – 05.

65

EXHIBIT-4.7

EXPORT OF NATURAL RUBBER TO SPAIN

EXPORT OF RUBBER TO SPAIN

Year Y X X2 XY

01 –02 10 -2 4 -20

02 –03 2689 -1 1 -2689

03 – 04 3222 0 0 0

04 –05 2153 1 1 2153

05 – 06 1634 2 4 3268

66

TOTAL 9708 0 10 2712

Y= a+bx n=5

A= y = 9708 = 1315.6

N 5

B = XY =1266 = 126.6

X2 10

Y = 1315.6 + 126.6 X 3

= 1315.6 + 379.8

= 1941.6 + 813.6

= 2755.2

TABLE-4.12

TREND PROJECTED FOR EXPORT TO SPAIN

Year Trend

06 – 07 2755.2

07 – 08 30236.4

08 – 09 3297.6

67

09 – 10 3568.8

10 – 11 3840.0

Interpretation:

While projecting the trend line for the export of rubber to Spain. It


exports

68

EXHIBIT-4.8

TREND PROJECTED FOR EXPORT TO SPAIN

69

TABLE-4.13

EXPORT OF NATURAL RUBBER TO SRILANKA

Year Quantity Percentage

201 – 02 1406 4.18

2002 – 03 4486 13.36

2003 – 04 9995 29.71

2004 – 05 10246 30.46

2005 – 06 7499 22.29

TOTAL 33632 100.00

Interpretation

The above table shows export of Natural rubber to Sri Lanka. There is

a fluctuation in the year 2004 – 05 and 2005-06. The highest level was

exported in the year 2005 – 06 with an amount of 7499 tonnes and the least

amount was exported in the year 2001 – 02 with an amount of 1406.

70

EXHIBIT-4.9

EXPORT OF NATURAL RUBBER TO SRILANKA

71

EXPORT OF RUBBER TO SRI LANKA

Year Y X X2 XY

01 –02 1406 -2 4 -2812

02 –03 4486 -1 1 -4486

03 – 04 9995 0 0 0

04 –05 10246 1 1 10246

05 – 06 7499 2 4 14992

TOTAL 33632 0 10 17946

Y= a+bx n=5

A= y = 33632 = 6726.4

N 5

B = XY =17646 = 1794.6

X2 10

Y = 6726.4 + 1794.6 X 3

= 6726.4 + 5383.8

= 12110.2

72

TABLE-4.14

PROJECTED EXPORT TO SRILANKA

Year Trend

06 –07 12110.2

07 – 08 13904.8

08 –09 15699.4

09 – 10 17494

10 – 11 19288.6

INTERPRETATION:

While projecting the trend line for the export of rubber to Srilanka. It


exports

73

EXHIBIT-4.10

TREND PROJECTED FOR EXPORT TO SRILANKA

TABLE-4.15

74

EXPORT OF NATURAL RUBBER TO TURKEY


2001 –02 57 0.43

2002 – 03 5182 37.58

2003 – 04 4337 31.45

2004 – 05 1858 13.47

2005 – 06 2355 17.07

TOTAL 13789 100.00

Interpretation

The above table shows the export of natural rubber to Turkey there is

a heavy fluctuation. The least amount took place in the 2001 –02.

75

EXHIBIT-4.11


76


Year Y X X2 XY

01 –02 57 -2 4 -114

02 –03 5182 -1 1 -1582

03 – 04 4337 0 0 0

04 –05 1858 1 1 1858

05 – 06 2355 2 4 4710

TOTAL 13789 0 10 1272

Y = a +bx, n =5

A = 13789 =2757.8

5

b = 127. 2

Y = 2757.8 + 127.2 X 3

= 2757.8 + 331.6

= 3139.4

77

TABLE-4.16

TREND PROJECTED FOR EXPORT TO TURKEY

YEAR TREND

06 –07 3139.4

07 – 08 3266.6

08 –09 3393.8

09 – 10 3521.0

10 – 11 3648.2

Interpretation:

While projecting the trend line for the export of rubber to Turkey. It


exports

78

EXHIBIT-4.12

PROJECTED EXPORT TO TURKEY

79

TABLE-4.17

EXPORT OF NATURAL RUBBER TO UK


2001 – 02 13 0.29

2002 – 03 746 16.86

2003 – 04 1236 27.93

2004 – 05 331 7.48

2005 – 06 2098 47.43

TOTAL 4424 100.0

Interpretation

The above table shows the export of natural rubber to UK. There is a

high level of fluctuation in the 2004 – 05. The quantity of 1236 exported in

the year 2003 – 04 suddenly declined to 331 in 2004 – 05.

80

EXHIBIT-4.13

EXPORT OF NATURAL RUBBER TO UK

81

EXPORT OF RUBBER TO UK

Year Y X X2 XY

01 –02 13 -2 4 -26

02 –03 746 -1 1 -746

03 – 04 1236 0 0 0

04 –05 331 1 1 331

05 – 06 2093 2 4 4196

TOTAL 4419 0 10 3755

Y= a+bx n=5

A= y = 4424 = 884.6

N 5

B = XY =3755 = 375.5

X2 10

Y = 884. 8 + 375.5 (3)

= 884.8 + 1126.5

= 2011.3

82

TABLE-4.18

TREND PROJECTED FOR EXPORT TO UK

Year Trend

06 – 07 2011.3

07 – 08 2386.8

08 – 09 2762.3

09 – 10 3137.8

10 – 11 3513.3

Interpretation:

While projecting the trend line for the export of rubber to U.K. It


exports.

83

EXHIBIT-4.14

TREND PROJECTED FOR EXPORT TO UK

84

TABLE -4.19

VALUE OF RUBBER PRODUCTS EXPORTED

Year Value(in crores) Percentage

2001 – 02 2165.01 14.12

2002 – 03 2528.31 16.49

2003 – 04 3199.07 20.86

2004 – 05 3606. 23 23.54

2005 – 06 3832.87 24.99

TOTAL 15331.49 100.00

Interpretation

The above table shows the value of rubber products exported the least

level was exported in the year 2001 – 02 with a percentage of 14.12 % and

the highest level was exported in the year 2005 – 06 with an amount of

24.49%

85

EXHIBIT-4.15


86


Year Y X X2 XY

01-01 2165.01 -2 4 -4330.02

02-03 2528.31 -1 1 -2528.31

03-04 3199.07 0 0 0

04-05 3606.23 1 1 3606.23

05-06 3832.87 2 4 7665.74

TOTAL 151331.49 0 10 4413.64

Y = a +bx, n =5

A = y = 151331.49 = 30166.298

n 5

b = xy = 4413.64 = 441.364

x2 10

= 3066.298+441.364x3

= 3066.298+1324.092

= 4390.39

87

TABLE-4.20

TREND PROJECTED FOR RUBBER

PRODUCTS EXPORTED

Year Trend

2006-2007 4390.39

07-08 4831.754

08-09 5273.118

09-10 5714.482

10-11 6155.846

Interpretation:

While projecting the trend line for the export of rubber

products. It shows a positive trend and hence the quantity of export will have

a rise in exports

88

EXHIBIT-4.16

PROJECTED RUBBER PRODUCTS EXPORTED

89

TABLE-4.21

QUANTITY AND VALUE OF RUBBER PRODUCTS

IMPORTED.

Year Value (in ‘000 Rs) Percentage

2000-01 5903161 14.53

01-01 6458983 15.92

02-03 7703573 18.96

03-04 9259094 22.79

04-05 11291981 27.80

TOTAL 40616792 100.00

Interpretation:

The above table shows the quantity and value of rubber products

exported. There is an increasing trend. The least value was exported in the

year 2001-01 with an amount of 5903161 and the highest value was

exported in the year 2004-05 with an amount of 11291981.

90

EXHIBIT-4.17


IMPORTED.

91


IMPORTED.

Year Y X X2 Xy

2001-02 5903161 -2 4 -11806322

2002-03 6458983 -1 1 -6458983

2003-04 7703573 0 0 0

2004-05 9259094 1 1 9259094

2005-06 11291981 4 4 22583962

TOTAL 40616792 0 10 13577751

Y = a +bx, n =5

A = y = 40616792 = 8123358.4

n 5

b = xy = 13577751 = 1357775.1

x2 10

y = 8123358.4 + 1357775.1 x 3

= 8123358.4 + 4973325.3

=12196683.7

92

Table-4.22

TRENDPROJECTED FOR VALUE OF RUBBER

PRODUCTS IMPORTED.

Year Trend

06-07 12196683.7

07-08 13554458.8

08-09 14912233.9

09-10 16270069.0

10-11 17627784.1

INTERPRETATION:

While projecting the trend line for the import of rubber

products. It shows a positive trend and hence the quantity of import will

have a rise in import.

93

EXHIBIT-4.18

TRENDPROJECTED FOR VALUE OF RUBBER

PRODUCTS IMPORTED

TABLE-4.23

94

YEAR WISE PRODUCTION OF NATURAL RUBBER

Year Tonnes Percentage

2001-02 631400 17.81

02-03 649435 18.34

03-04 711650 20.07

04-05 749665 21.14

05-06 802625 22.64

TOTAL 3544775 100.00

Interpretation:

The above table shows year wise production of natural rubber. There

is an increasing trend in the year 2—1-02 level was exported in the year

2001-02 with an amount of 631400 tonnes and the highest level was

exported in the year 2005-06 with an amount of 802625 tonnes.

95

EXHIBIT-4.19



96

Year Y X X2 XY

01-01 631400 -2 4 -1262800

02-03 649435 -2 1 -649435

03-04 711650 0 0 0

04-05 749665 1 1 749665

05-06 802625 2 4 1605250

TOTAL 3544775 0 10 442680

Y = a +b x, n = 5

A = y = 3544775 = 708955

n 5

b = xy = 442680 = 44268.0

x2 10

Y = a +b x =708955+44268 x 3

= 708955 + 132804

= 841759

97

TABLE-4.24

PROJECTED TREND FOR YEAR WISE PRODUCTION OF

NATURAL RUBBER

Year Trend

06-07 841759

07-08 886027

08-09 930295

09-10 974563

10-11 1018831

Interpretation:

While projecting the trend line for the year wise production of

natural rubber. It shows a positive trend and hence the quantity of production

will have a rise in future.

98

EXHIBIT-4.20

TREND PROJECTED FOR YEAR WISE PRODUCTION OF

NATURAL RUBBER

99

CHAPTER-V

5.1CONCLUSION

5.1.1 FINDINGS

The rubber board has its head quavers located in kotteyam in kerala

state.

Rubber is an elastic hydrocarbon polymer, which occurs emulsion

known as latex.

Kerala and kanyakumari district of Tamilnadu together constitute the

traditional rubber growing reigns in the country.

Over 20 million families are dependent on rubber cultivation for their

basic source income.

More than 90% of the natural supply comes from south East Asia.

The rubber research institute of India is situated 7 km eastwards in the

suburban village of mutually.

Natural rubber (NR) can be imported in India, free of license from 1st

April 2001 of prevailing import duty.

Rubber board is the designated agency for export promotion of natural

rubber.

100

5.1.2 SUGGESTIONS:

A suggestion is provided to the rubber board to promote consumption

of non-, traditional markets within the country & it can get support

from corporate.

Export marketing respects of the natural rubber could also be

conducted & Special efforts can be taken in creating awareness in

export oriented market development.

Natural rubber production increased at a fast rate so as to meat the

export demands in future and also the domestic demand.

Supply of technical advice to rubber growers would implement in

raising rubber production.

To suggest the central government on all matter relating to the

development of rubber industry, and export of rubber.

Central government should provide offers for rubber exporter.

Rubber board should take necessary steps to compote in the global

trade.

Trade promotion agencies lime rubber research institute of India

encourages exporters.

101

5.1.3CONCLUSION:

One notable feature of exports in recast years is the increasing trend in

the export of natural rubber from India. Although import of rubber is made

in the state of both natural and Synthetic, exports of rubber from India is

made only in for of natural rubber.

In this field we are faced with a serve competition from Thailand,

Indonesia & Malaysia, Natural being a correctitude market for which all

major producers are lying with each other a greater effort is needed on out

part to enter the market and to promote our export of natural rubber from

India. India is one of the main producers of natural rubber in the world with

share of 9% of world production in the year 2005-2006.

102

BIBLIOGRAPHY

BOOKS:

Research Methodology – C.R. Kothari

International Trade – M.I.Varma

JOURNAL:

Rubber Board Annual Report

UPASI – Coonoor, Tamilnadu.

WEBSITE:

www.exportindia.com

www.rubber board.org

www.google.com

103

http://www.google.com/

http://www.rubber/

http://www.exportindia.com/

hari yetta

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