Rubber imports have increased by 5.5 per cent to 1,06,294 tonnes in the first quarter of the 2015-16 financial year, despite an increase in import duty.
Rubber imports during the same period last year stood at 1,00,725 tonnes.
Government had hiked the import duty on natural rubber to 25 per cent or Rs 30 per kg, whichever is lower, to protect interest of growers and curb imports that touched record during last fiscal.
Another reason for higher imports in the first quarter was decline in production during the period.
As per the Rubber Board data, the production of natural rubber declined by 21 per cent in the first quarter of current fiscal to 50,000 tonnes from 63,000 tonnes in the year ago period.
India’s rubber imports touched an all-time high of 415,000 tonnes in 2014-15 owing to lower international prices and fall in domestic production.
The production of natural rubber declined to 12-year low at 655,000 tonnes in 2014-15.
Total rubber consumption by various industries, including tyre manufacturers, was 1.02 million tonnes during 2014-15 which was 3.7 per cent more than the previous year.
– Business Standard
