The Automotive Tyre Manufacturers’ Association (ATMA) is concerned over the domestic rubber scenario, which is turning bleaker by the day with the production touching lower levels.
Such low production levels in the range of 55,000 tonnes per month even during the height of peak season is a matter of grave concern to the industry, ATMA said in a communication to the Commerce Ministry.
Notwithstanding the fact that rubber prices in India are ruling 20 per cent higher than international prices, the production is showing a constant fall. The issue needs to be addressed urgently, it said.
Given the steep fall in NR production, ATMA said that imports are a must to meet the growing demand of tyres from auto and transport sectors.
However, the Centrte has continued to put curbs on rubber imports, making it difficult for the industry to source this key raw material at competitive prices.
The export obligation period in lieu of duty free import has been reduced to six months and port restrictions have been put in place.
High import duties on rubber and much lower duties on finished tyres is leading to indiscriminate surge in import and dumping of tyres in India.
Latest statistics on tyre import for the period April-December 2015 show more than one lakh truck and bus radial (TBR) tyres are being imported in India each month.
