Tyre firms demand duty-free NR imports

While welcoming the recent relief measures by the government for natural rubber (NR) imports, the tyre industry has asked for a complete waiver of import duty.

According to the Automotive Tyre Manufacturers Association (Atma), the government’s decision has come at a time when NR prices are at Rs 220 a kg and thus imports are uneconomical even at the low Customs duty of 7.5 per cent. The global NR price is currently higher than the local one which makes imports at 7.5 per cent duty unviable.

In a communication to Commerce Secretary Rahul Khullar, Atma Chairman Neeraj Kanwar said that besides record high prices, NR availability was not sufficient adding to the uncertainties faced by the industry in sourcing the commodity to meet the growing demand for tyres. Atma, therefore, asked the government to reconsider the recent decision on NR and urged it to accede to its long-standing demand of permitting duty-free import of 200,000 tonnes of natural rubber over the next one year. Atma also requested duty-free imports to the extent to fill the gap between domestic NR availability and consumption on a regular basis.

According to Atma estimates, the demand-supply gap is estimated to be approximately 200,000 tonnes in the next financial year (2011-12).