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Rubber and tyre industry says imports have been less than production-consumption gap this year

 MarthaBertha
  64
 May 29, 2024

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KOCHI: The rubber and tire industry has strongly contested import claims. The United Plantation Association of South India (UPASI) recently said that the rubber industry is suffering as natural rubber (NR) production in India is much higher than the domestic production deficit.

According to the Rubber Board, the gap between production and demand of natural rubber was 255,000 tons from April to October of the current fiscal year, but imports of natural rubber stood at 252,000 tons.

“Imports of natural rubber are much lower than the gap between domestic production and consumption. Their argument that imports are hurting growers is flawed. On the contrary, the President of the Association of Indian Rubber Industries (AIRIA) said that the industry is under a punitive tariff structure (AIRIA ) Gupta said that imports of natural rubber are much higher than the finished product, leading to a decline in the competitiveness of the industry.

The industry has also objected to the fall in natural rubber prices due to import of natural rubber from India. Rajiviv Budhraja, Managing Director, Automotive Tyres “The price of natural rubber in India is still 20-25% higher than the international price but the entire domestic production is being consumed by this industry due to acute shortage in India. Manufacturers Association (ATMA) only).

“Total consumption of natural rubber in India declined in the first half of 2015-2016, reflecting the decline in value addition in the country. This is a worrying sign after the government’s clear emphasis on manufacturing. Recent statistics show that tire production in India is declining. Manoj added that import duties on natural rubber and Chinese lunch lines for trucks and buses have severely impacted the domestic tire manufacturing business.

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