Monday, September 13, 2010

Government to rectify import duty disparity

"Give me a month's time, we are trying to sort out the problem of inverted duty structure, said Commerce Secretary - Dr. Rahul Khullar, on the sidelines of a CII event.

Tyre makers had called for a import duty cut to 7.5% as booming automobile sales drive a sharp rise in rubber demand and imports. The government is not likely to concede the industry's demand of bringing rubber import duty to 7.5%, but there may be a ceiling of Rs. 20.46 per kg.

Rubber prices may start moving towards north on increased buying from tyre manufacturers who kept themselves in the sidelines following the government proposal to cap import duty at Rs 20.46 per kg. However, seller resistance has forced the tyre makers to enter the market again.

India, the world's fourth biggest rubber producer, imported 75,042 tonnes during April to August this year, mainly from Thailand, Malaysia and Indonesia. India is likely to produce 893,000 tonnes of rubber, while its consumption is pegged at 978,000 tonnes in 2010-11.

Read lot more in Rubber4U – 15th September 2010 issue