Rubber Act

Why is it in news?
  • The rubber sector is in turmoil amid concerns that the Centre plans to repeal the Rubber Act of 1947.
  • But sources in the sector suspect that reports of the likely repeal of the Act, which first surfaced in 2016, was the result of a ‘clerical error.’
Details:
  • The rubber sector has about 1.3 million rubber farmers contributing to a ₹1-lakh crore industry.
  • The existence of the Rubber Board, the system of licensing, extension, replanting, research, subsidies, control over export-import etc. depend on the Rubber Act.
  • Withdrawal of the Act would empower the Centre to disband the board and end the present system of rubber farming.
Background:
  • The Rubber Act came into being in 1947 to promote natural rubber, a strategic product, entrusting the task to the Rubber Board.
  • The sector has since grown to comprise 8.22 lakh hectares of cultivation and 13.2 lakh small cultivating units.
  • Some experts have raised concerns as over the years the Centre had ignored the sector by cutting financial allocations.
Posted by Jawwad Kazi on 19th Jul 2020
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