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Monday, August 15, 2022

Rubber industry worried over import duty hike


The rubber industry has expressed concern on the move to increase import duty on natural rubber which would hit thousands of small units.

Niraj Thakkar, President, All India Rubber Industries Association, said in a press release, the hike in import duty on natural rubber to Rs 34 a kg from the prevailing Rs 20 “has come as a bolt from the blue for the industry.”

The import duty on natural rubber, a key raw material will severely impact over 5,000 small, medium and micro enterprises manufacturing rubber footwear, gloves, small rubber components and conveyer belts.

The sops provided to SME sector in the budget is certainly a positive for the rubber industry as a large majority of units fall in the SME space.

Since the benefits will stay even after the units grow out of the SME category, they will certainly spur the units to grow bigger.

Permission to SMEs to list on SME exchange without making an IPO is another positive for the industry, he said.

Source: Business Line

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