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Tyre companies to buy NR at 25% higher than global price

Tyre companies have come forward to rescue rubber growers in Kerala, the largest rubber producing state in India  Major tyre companies have agreed to procure natural rubber from domestic market at 25% rate higher than then international ( Bangkok) price till 31st March 2015, reported Business Standard .

In a meeting with Kerala chief minister Oommen Chandy, top brass of 12 leading tyre companies had approved the purchasing formula proposed by Kerala government, said the news report.

According to the agreement worked out on December 18, tyre companies will buy rubber from local market with 20% customs duty and 5% purchase tax, over the international price from local dealers.

Rubber Board will fix the price on a daily basis, based on Bangkok daily rates. As per the agreement, government will refund 50% of the purchase tax to the companies.

 

The other 50% also will be disbursed as refund claim on VAT collected from the buyers. The scheme will be applicable to the purchase of RSS-4 grade only.

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