Automotive Tyre Manufacturers Association (ATMA) has asked the government to allow duty-free import of natural rubber as shortage of the commodity in India has become a major deterrent for the tyre industry to support domestic manufacturing. According to ATMA, natural rubber (NR) consumption is expected to increase further and the annual demand is expected to cross 13 lakh tonnes this fiscal.
It mentioned with the production of 7,90,000 tonnes as projected (in normal scenario) by Rubber Board, NR imports to the tune of at least 5 lakh tonnes are a must. It added the tyre industry accounts for over 70 per cent of NR consumed in the country. While the Rubber Board had projected much higher production figures for the ongoing fiscal, ATMA claimed that the ground realities are not in line with the Rubber Board's guidance as market arrivals of sheet rubber have dried thin.
It said during the first quarter of the current financial year, domestic NR production could fulfill only 42 per cent of the total requirement. According to provisional figures, as against NR consumption of 3.01 lakh tonnes, NR production stood at 1.27 lakh tonnes in the Q1 of FY22. Besides, it said with economic recovery back on track and the automobile industry witnessing increased traction, there is a surge in demand for tyres.
