ATMA voices concerns over domestic rubber scenario.
The Automotive Tyre Manufacturers’ Association (ATMA) has voiced its concerns over the impact of lower production scenario in domestic rubber, which is turning bleaker by the day.
In a communication exchange between ATMA & the Commerce Ministry, ATMA showed concerns over low production levels in the range of 55,000 tonnes per month even during the height of peak season & called it a matter of grave concern to the industry. The governing body added that, albeit, the fact that rubber prices in India are ruling 20 per cent higher than international prices, the production is showing a constant fall. The issue needs to be addressed urgently.
ATMA also said that, given the steep fall in the production of Natural Rubber, imports are a must to meet the growing demand of tyres from auto & transport sectors. However, with the government’s stance of continuing to put curbs on rubber imports, making it difficult for the industry to source this key raw material at competitive prices.
High import duties on rubber & much lower duties on finished tyres is leading to indiscriminate surge in import and dumping of tyres in India. Latest statistics on tyre import for the period April-December 2015 show more than one lakh truck and bus radial (TBR) tyres are being imported in India each month.