The rubber industry has opposed the demand to increase import duty on natural rubber, saying it will erode the competitiveness of SSI sector.
India levies one of the highest duties on natural rubber and any move to increase duties will impact around 6,000 rubber units largely MSME’s, Mohinder Gupta, President, All India Rubber Industries Association (AIRIA), said in a statement.
According to AIRIA, India is deficient in both natural rubber and synthetic rubber, so imports of these two principal raw materials are crucial.
Higher import duties on key raw materials and lower duties on imports of finished products have impacted cost competitiveness of the industry and also aided in import of cheaper finished goods. Rubber industry supports a vibrant and healthy plantations sector. However, the Association wanted planters to be supported by direct subsidies from Central and State Governments.
More taxation on the industry will further lead to import of finished products from countries such as China where companies are able to access rubber at much cheaper prices, he said.
– The Hindu
