The Hindu Business Line : Malaysian joint venture firm to export rubber

MARDEC R K Latex Pvt Ltd, a joint venture company between Kerala-based R.K.Latex and Mardec International Sdn Bhd, Malaysia, has come out with an offer to procure and sell excess rubber stocks available in the country during the current fiscal.

The surplus stock will be exported on a regular basis through R1 International, one of the leading companies in the world dealing in natural rubber formed by Mardec International, Cargill and a Thailand firm.

The stock was likely to be procured from the Rubber Board, Kerala State Rubber Marketing Federation, Rubco and other firms, Mr E. Ranjit Kuruvilla, Managing Director, R.K. Latex, said at a press conference here.

He said the Union Government would provide subsidy at the rate of Rs 7 per kg if the firm undertook to export 20,000 tonnes. Apart from this, there would be a State Government subsidy of Rs 3.5 per kg. The subsidies were essential during the initial period of exports as the firm had to give a discount in the international market. After five years, these subsidies might not be required; he said adding the firm would continue to export on a regular basis even if there was a deficit in the market. The basic aim, he said, was to make Indian rubber a well-known product in the international market.

He pointed out that so far, Indian latex and sheet rubber were not familiar in the rubber-consuming countries. This joint venture would make all its efforts to sell it as Indian rubber abroad.

It was decided to export two containers of rubber every month that would be increased to 20 later. The basis of this transaction was not for profit but to help the rubber farmers of Kerala, who were facing difficulties due to the low realisation of prices of rubber. He hoped that the prices would go up with this transaction and the entire surplus in the country would be sold outside the country.

Mr Ranjit said the joint venture with Mardec was in continuation of the Prime Minister Mr A.B. Vajpayee's visit to Malaysia who had a meeting with the Malaysian Prime Minister for collaboration with regard to rubber production and other fields related to rubber. He said that R1 International would be doing business with the Rubber Board and other related agencies on a long-term basis to ensure that the farmers would get a higher price for their produce.

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