Tyre sector seeks duty-free import of natural rubber

Elvera Bartels

Severe crunch in the availability of all-natural rubber is disrupting the manufacturing processes at tyre production models even as the desire for tyres is peaking, Automotive Tyre Companies Affiliation (ATMA) has mentioned in a interaction to the Union Minister of Commerce & Market.

The shortage of rubber at the peak of peak manufacturing time in Kerala is unparalleled and does not augur well for the tyre industry price chain. As against the regular domestic manufacturing in the assortment of seventy five,000 tonnes each in October and November, the similar is not predicted to exceed forty five-50,000 tonnes in the similar interval this calendar year.

New norms have to have nearer collaboration in between tyre and raw product industries: ATMA

Sturdy intake

NR intake, on the other hand, is predicted to continue being at above just one lakh tonnes each in these two months, with a resultant deficit of just one lakh tonnes in a shorter span of two months of the ongoing peak manufacturing time top to main problem for tyre industry that consumes almost seventy five per cent of complete rubber manufactured in the state, ATMA has mentioned.

The shortage will come at a time when domestic manufacturing of Professional Automobiles (CVs) is searching up just after a extended downturn. Truck and Bus (T&B) Tyres have rather larger NR material. NR desire is, for that reason, predicted to organization up even more but the availability crisis is very likely to toss a spanner in the will work, mentioned Rajiv Budhraja, Director-Normal, ATMA.

Tyre industry voices problem above domestic availability of all-natural rubber

Offer deficit

According to Rubber Board figures, the desire source hole is widening as intake expansion is significantly in excessive of its manufacturing. The domestic deficit for FY22 which was projected to be forty five per cent of the manufacturing at 3.four lakh tonnes in the commencing of the calendar year is now projected to balloon to 55 per cent of the manufacturing at a significant four.four lakh tonnes.

Such widening deficit is a main problem as the policy to help domestic production less than Atmanirbhar Bharat and specifically the policy to prohibit unhindered import of tyres has unleashed main expansion prospects for production and export of tyres.

With a watch to making certain that tyre manufacturing and exports get spot in an uninterrupted fashion, responsibility no cost imports of rubber will need to be permitted to the extent of projected desire source hole in the state, i.e. four.four lakh tonnes. The responsibility no cost import volumes can be reviewed every single calendar year, as Tariff Charge Quota (TRQ) quantity, in accordance with Manufacturing, Usage estimates set up by the Rubber Board.

In addition, port constraints on NR import will need to be taken out, due to the fact import is very important and vital for bridging the desire- source hole. The restriction is only introducing to the cost and impacting competitiveness of the industry.

Allaying the concerns of NR producing interests about import of NR remaining larger than deficit and therefore producing downward strain on domestic prices, ATMA has mentioned that NR imports by tyre industry have been only to fulfill the domestic deficit as the import figures correspond to deficit figures. As and when domestic availability has enhanced, NR import by tyre industry has been scaled down.

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