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NR imports declined due to improved domestic availability: ATMA

 MichaeliaHood
  42
 May 30, 2024

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Coach: The tire industry says natural rubber imports will decline as domestic natural rubber supply increases, proving that consumers will choose imports when supply is tight.

Recently, Rubber Sheet released new data for FY2016-17 showing that natural rubber imports are down 22% this year and production is up 7%.

Satish Sharma, Chairman, Automotive Tire Manufacturers Association (ATMA) “With the increase in supply of natural rubber in the domestic market, production has declined significantly as compared to natural rubber imports. This confirms the industry’s stand that imported natural rubber cannot be supplied as per quality parameters to make up for shortages or certain grades of rubber.

Responding to the concerns about natural rubber imports caused by domestic natural rubber prices being lower than international prices, ATMA said that although domestic natural rubber prices are 20% higher than international prices, domestic production is completely consumed by the industry resulting in almost no exports. This reaffirms the view of natural rubber consumers that there is a serious shortage of natural rubber in the country.

“The tire industry has improved its domestic rubber production capacity and quality through various measures linking it to rubber sheets, reflecting commitment to a thriving domestic natural rubber industry. It is now time for stakeholders to strategize. The industry is getting quality rubber at competitive prices and the natural rubber growers are being adequately compensated,” Sharma added.

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