The rubber consuming industry is irked over the fact that the Centre is not going ahead with zero-duty rubber imports despite the high prices of natural rubber. The domestic buyers had been seeking correction in what it calls the `inverted duty structure’ in ‘tyres’ and its key input ‘rubber’.
While ministry of commerce and industry has categorized 2007 as ‘Boom Year’ for the third successive year, the rubber consuming sector’s (both tyre and non-tyre) concerns on rubber imports have not been addressed, according to ATMA ( Automative Tyre Manufacturer’s Association). ATMA had earlier sought duty-waived import of 100,000 tonnes of NR on priority.
ATMA directer general Rajiv Budhraja has said, in a statement, that while NR is riding the crest of consistent and steep price increases, the Union Government has overlooked the expectations of domestic tyre industry. While rubber got the ‘Boom Year’ tag, the consuming industry suffered the ‘inverted duty-structure’. NR, the key raw-material attracted 20% customs duty. But tyre- the finished product- got away with just 10% duty, Budhraja said.
What has rung alarmbells at ATMA is the NR price in April 2008 starting off in the range of Rs 102-104 per kilo. In April 2007, the average price was Rs 89.79 per kilo. “In a span of less than 12 months, there was an increase of approximately 15%,” Budhiraja pointed out.
While NR prices stayed northbound in the last financial, domestic NR production had registered a decline of 3%. “Domestic availability is a matter of concern for the industry,” Budhraja said.