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Dip in natural rubber availability hurting domestic tyre production, says ATMA

Press Trust of India  |  New Delhi 

Tyre manufacturers' body ATMA today expressed concern over consistent decline in availability of natural in the domestic market which has hit tyre units.

In its communication to Ministry of Commerce & Industry, ATMA said that in such situation industry needs to take recourse to import of natural rubber, which is highly taxed, to meet the growing deficit.

"While natural import is imperative to meet the domestic demand, the policy environment is highly restrictive. Not only custom duty is steep 25 per cent, there are further challenges in accessing natural rubber," (ATMA) said in a statement.

Government has removed port restrictions on the import of natural under advance authorisation, however industry was looking for removal of port restrictions for all imports since import of NR is imperative to keep the factories running, he added.

ATMA has also expressed concern over lack of timely availability of data on which is hampering the planning exercise at tyre industry.

"As against the standard practice of release of monthly data in the first week of next month, the production, consumption data is being released by very late. Industry had no clue about the production patterns during the current fiscal even though a quarter had elapsed," Budhraja said.

According to latest figures released by the Rubber Board, the production has contracted significantly by 16 per cent in the first two months of ongoing fiscal.

Against production of 0.98 lakh tonnes in Apr-May 2017, only 0.82 lakh tonne production could be achieved in the first two months of the current fiscal.

Consumption on the other hand has risen 13 per cent to 2 lakh tonnes during the same period leaving a gap of 1.2 lakh tonnes, ATMA said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 09 2018. 18:55 IST