Welfare plan for quot;smallquot; rubber owners

In a bid to strengthen its agrarian hold, the UPA Government is planning...

In a bid to strengthen its agrarian hold, the UPA Government is planning to introduce welfare schemes for small and marginal rubber plantation owners. But there8217;s a hitch: it has to first amend the Rubber Act and redefine who constitutes 8220;small and marginal8221; owners. According to the Government8217;s proposal, 8220;small growers8221; will be defined as those who own a rubber estate of 10 hectares or less instead of the current 20.23 hectares 50 acres.

The redefinition will 8220;enable the rubber Board to introduce the schemes for the benefit of small and marginal farmers8221;. The Commerce Ministry officials said the schemes would be designed by the Rubber Board using the monies in the Rubber Development Fund formed from the cess levied on rubber manufacturers.

The planters would also be exempted from registering their fields with the Board, as the Government feels it is not possible to enforce the provision given the large number8212;10.73 lakh8212;of growers in the country. Other concessions include repealing the mandatory licence for planting and replanting of rubber by any grower as the cumbersome process involves considerable effort and expenditure. 8220;The provisions for registration of estates and licence for planting and replanting of rubber will remove the cumbersome restrictions,8221; says the proposal.

The cess payers would also have the freedom to make a self-assessment and remit the excise duty, leaving the Board to scrutinise the returns and seek explanation if it feels there has been an under-assessment.

However, the penalties for default are being enhanced, up from Rs 1,000 to Rs 5,000 for the first offence. There would be a provision for recovery of cess with the cost of collection and interest with compounding of offences.

A new section is also being added to provide the Board powers to implement the prescribed quality and packaging standards on rubber produced for domestic use as well as for import. The Board will be empowered to inspect the premises of the manufacturers/processors to ensure compliance with BIS standards.

The Central ministries would get representation in the Board, with one representative each from Commerce, its finance wing and the Ministry of Agriculture. 8220;Their representation will help provide the necessary inputs and guidance to the Board relating to the areas concerning these departments,8221; as per the proposal.