Tyre manufacturers are investing money to produce natural rubber in northeast India, following a 40 per cent import cap imposed by the government, Times of India reports.
The central government had licenses tyre imports in June to curb the rising shipments from China and Thailand.
Tyre manufacturers are thus slated to invest around Rs 1,100 crore to produce high-yielding variety of natural rubber in the northeast.
“Around 70 per cent of natural rubber is consumed by the auto tyre sector in India. This would also contribute to socio-economic development of northeast, while improving the standard of living of the beneficiaries, the majority of whom hail from tribal and other resource-poor communities. The improvement in the quality of processed forms of natural rubber will help the farmers to get a better price for their produce as well,” an officer told TOI.
Through the investment, the aim is to increase the average yield per hectare to 1500 kg from 1200 kg currently. Meanwhile, the administration is analysing for a possible further replication of the model for other vegetation. This will be done to ensure that the interests of the farmers are protected both on the upside as well as the downside.
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