India: Rubber product makers reel under imports, high GST

MUMBAI, AUGUST 18:

Small and medium rubber product manufacturers are reeling from the sharp surge in imports and high GST rate of 28 per cent on most products even as the government protects the interest of large tyre companies with an anti-dumping duty.

The Directorate General of Anti-dumping & Allied Duties recently recommended levy of an anti-dumping duty of $245-452 (₹15,476-28,552) a tonne on truck and bus radial tyres imported from China.

The rubber industry manufactures over 35,000 rubber products, which are used across sectors such as automobile, defence, healthcare, agriculture and other niche areas.

Vikram Makar, Senior VP, All India Rubber Industries Association, said the growth in the industry has dwindled in the last three years and can be revived if proper policies are put in place. With the government opening up sourcing for most defence and infrastructure projects, it should ensure that the opportunity is not taken away by international companies, he said.

Vinod Patkotwar, CEO, Crown Rubber Products, said the collation of data on imports is a herculean task as many of the rubber products are clubbed with other items during import. For instance, he said conveyor belts used in the mining sector are imported 12-15 per cent cheaper from China along with other implements.

Lack of data

Vishnu Bhimrajka, Director, Polmann India said the Government has not been able to implement tariff barriers to restrict import due to lack of proper data.

“I have received four calls in last three months from Chinese companies asking whether we are interested in a joint venture for setting up a unit in India as they feel the labour cost there is rising,” he added.

Though the association feels that the required data can come only from the government, it has appointed two full-time officers to collate data and liaise with the Government.

With annual revenue of ₹75,000 crore, the rubber products industry is dominated by the small-scale sector.