The domestic rubber industry wants the government to review the anti-dumping duty imposed on their raw material, carbon black, as it hurts the MSME players in the sector.
The tyre industry benefited from imposition of anti-dumping duty on import of bus and truck tyres but the non-tyre industry had no such protection when it came to their finished products and all this was hurting the smaller players in the rubber industry and they have sought relief from the government.
The All India Rubber Industries Association, which has 1,200 members, says the SME and small units are facing trouble in accessing raw materials and had to buy it from the black market at an additional premium.
According to Vikram Makar, senior VP of All India Rubber Industries Association (AIRIA) and CMD of Oriental Rubber Industries, they were impacted first by demonetisation, followed by GST and then the anti-dumping duties imposed on their raw materials. All this has had a compounding effect on the smaller players in the rubber industry and put many units in peril, he said. So, while tyre industry has bounced back, the non-tyre segment is struggling.
Shortage of rubber in the Indian market was forcing the smaller players to import and the additional anti-dumping duties was adding to their costs, Makar said. The anti-dumping duties for carbon black from China is $350 per tonne and $60 for carbon black import from Russia.
This duty was imposed five years ago when the scenario was different but needs to be reviewed as things have changed now but there is no mechanism in the government to do this and they want the small fragmented rubber industry to do this, Makar said.