RUBBER BILL 2022

RUBBER BILL 2022

TOPIC: Economy

Context- The Union Ministry of Commerce and Industry has proposed to repeal the Rubber Act, 1947 and replace it with the Rubber (Promotion and Development) Bill, 2022.

Concept-

How is the Bill different from the Rubber Act of 1947?

• The Bill brings natural rubber, its cultivation, rubber plantations, rubber wood and all associated agricultural activities under the ambit of the rubber industry.
• This is a major change from the Act which did not define rubber cultivation as an industrial activity.
• Rubber plantations will be under the Union or Concurrent List.
• The Bill gives the central government authority to supersede the Rubber Board. The central government can take its own decisions without consulting the Rubber Board.

About Rubber Board:

• 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.
• The Ministry of Commerce & Industry, Government of India, established the Rubber Board in 1947 to strengthen the development of the rubber industry by offering financial assistance, consolatory and regulatory services.
• Head Office is in Kottayam, Kerala.
• The Rubber Research Institute of India (RRII) established in 1955 is located on a hillock in the eastern suburb of Puthuppally, Kottayam, eight kilometres from the town.
• Foreign Direct Investment (FDI): 100% FDI in plantations of rubber, coffee, tea, cardamom, palm oil tree and olive oil tree.

Rubber:

• India is currently the sixth largest producer of NR in the world with one of the highest productivity(694,000 tonnes in 2017-18).
• Traditional rubber-growing states comprising Kerala and Tamil Nadu account for 81% of production.
• Major non-traditional rubber growing regions are the North Eastern states of Tripura, Assam and Meghalaya, Odisha, Karnataka, Maharashtra and West Bengal.
• Due to the major spike in the rubber consumption and deficit in the NR production in India, around 40% of NR is imported from other major rubber producing countries such as Malaysia, Indonesia and China.

Conditions required for the growth of Rubber tree

• Rubber is made from the latex of a tree called HeveaBrasiliensis, The British established the first rubber plantation in India in 1902 on the banks of the river Periyar in Kerala.
• Rubber is a tropical tree.
• It requires high temperature throughout the year – ranging between 20°-35°C or average monthly mean of 27°C. Less than 20°C temperature is detrimental.
• Rubber also requires heavy rainfall. The rainfall should be well-distributed throughout the year.
• Rubber trees can grow in a wide range of soils, including clay, sand and loam. They can tolerate both acidic and alkaline soils, but need good drainage.