KOCHI: The release of fresh data by the Rubber Board projecting domestic natural rubber deficit of 3.4 lakh tonnes during FY 2017-18 has come as a cause of serious concern for the domestic tyre industry which is already facing shortage of supplies.
In a representation to the Ministry of Commerce, the industry has asked for duty free import of rubber equivalent to the projected domestic deficit.
The Board recently projected an output of 7.2 lt and consumption of 10.6 lt for the FY 17-18. The tyre industry consumes 65-70 per cent of the natural rubber produced in the country.
According to KM Mammen, Chairman, Automotive Tyre Manufacturers Association (ATMA), the domestic production continues to be far below its requirement. Lately, sharp volatility in NR prices has led to further crunch. In the last 45-60 days, NR prices have zoomed up by a significant 30 per cent and growers are not willing to sell in the hope of a continued rally in the prices.
Imports are imperative to bridge the gap but global prices too zoomed and coupled with high import duty, imports have become unviable.
Adding to the industry’s worry is the fact that mid-February onwards the lean production period will commence which will last till September. So availability will be significantly curtailed, he said.
Source: Thehindubusinessline.com
