'Tyre prices may go up 25 pct'
"ATMA went to meet the Prime Minister, we were called. We were heard and there is no solution at the end of the day," Automotive Tyre Manufacturers' Association (ATMA) Chairman Neeraj Kanwar told reporters here.
Earlier, in March, ATMA had written to Prime Minister Manmohan Singh seeking government intervention to address the issue of rising rubber prices and its impact on the tyre industry.
The tyre industry demanded that the government scrap the 20 per cent import duty on natural rubber and ban futures trading of the commodity, besides excluding natural rubber from negative lists under regional trade agreements.
ATMA and the Indian Cycle & Rickshaw Tyres Manufacturers' Association (ICRTMA) said tyre manufacturers have already increased products prices and more will follow unless steps are taken to soften rubber prices.
"To circumvent input cost rise, we need 20-25 per cent rise in selling price starting from April. If we need to remain healthy and invest back, then small rises are required," Kanwar said.
Supporting Kanwar's argument, ICRTMA Chairman Rummy Chhabra said cycle and rickshaw tyre makers will also be forced to hike prices by around 20 per cent if no change in the natural rubber situation happens.
"Around 300 large plantation growers in Kerala have formed a cartel and are selling natural rubber at over Rs 100 higher
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