Rubber planters oppose tyre industry demand to cut tariff

Tyre manufacturers, the major consumer of natural rubber, are asking for a reduction in the duty

The United Planters' Association of Southern India (Upasi) say there should be no reduction in the import duty on natural rubber (NR), currently 25 per cent.

Vinod Sivappa, president, says "any such move will be detrimental to the interest of 1.2 million growers dependent on this agro-industry and tantamount to fixing the final nail in the coffin".

Tyre manufacturers, the major consumer of NR, are asking for a reduction in the duty.

Upasi says the duty is already too low, having been wrongly fixed. "Be that as it may, there is no reason whatsoever to reduce the duty, especially given the surge in NR import in the past few years, with each year reporting new highs," said Sivappa.

Import of NR in 2008-09 was 77,762 tonnes. In 2015-16, it was 458,374 tonnes. In the first nine months of the current financial year, it was higher in the same period a year before by 134,000 tonnes.

Tyre makers notes the Rubber Board's production estimate for 2017-18 is 720,000 tonnes vis-