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In order to promote ease of doing business and growth of the sector, the draft Rubber (Promotion and Development) Bill, 2022, has proposed a series of steps, including replacement of periodic licensing with one-time registration, removal of permission requirement for possession of natural rubber and laying down clear procedures for inspection. The commerce ministry has proposed the repeal of decades-old laws on rubber and introduced new legislation that seeks to address the challenges faced by the sector and remove some of the archaic provisions of present law to create a conducive environment for businesses.

The Department of Commerce has said it is proposing to repeal the Rubber Act 1947 and introduce a new law. Explaining the rationale behind the proposal to repeal the Rubber Act, the draft bill has said that in recent years, there have been widespread changes in the industrial and economic scenario, especially concerning development in rubber and allied sectors. Therefore, it has become imperative to remove archaic provisions, create an environment conducive for easy conduct of business, reorient functions of the (Rubber) Board with equal focus on upstream and downstream sectors and to contribute towards making world-class rubber industry.

The other new clauses proposed in the draft include removal of provisions relating to import and sale of natural rubber (NR) and its purchase in the domestic market by Rubber Board; specific provisions for developing and assisting new plantations and revising existing ones; norms to promote research, exports, human resource development, skill development in line with the needs of the industry; and replacing certain penal actions with a civil penalty.