Indian tyre industry has recently invested
over `.26,000 crore on capacity expansion. However, low import
tariffs have encouraged large and growing volume of tyre imports and have badly
hurt the domestic industry by cheap imports from China. The tyres can be
imported at a rate of 5% or even nil rate of duty under various trade
agreements, while the same for natural rubber is at 20%. In a pre-budget
memorandum submitted by Automotive Tyre Manufacturers' Association to the
government, requesting the centre to double import duty on tyres to 20% in the
upcoming Budget 2015, which in turn will provide a level-playing field to the domestic
industry.
India’s natural rubber imports during April’
14 to January 2015 is at 359,857 tonnes, which is 14.22% more than the same
period of previous year, which was at 315,049 tonnes. The Association of Planters
of Kerala has sought to enhance the import duty on natural rubber to 30% from
next fiscal, besides an immediate ban on imports temporarily as an urgent
intervention. If corrective measures are not taken immediately, there would be
a major shift from rubber cultivation. Already small growers have started
looking for other vocations for sustainable income.
The benchmark RSS4 grade rubber closed at `.140.90
a kg at Kottayam, while RSS3 grade closed at `.117.43 a kg at
Bangkok and Malaysian SMR20 closed at `.88.30 a kg. On
National Multi Commodity Exchange March 2015 futures closed at `.127.17
a kg, April at `.128.13 and May at `.128.89 a kg. On
Tokyo Commodity Exchange, February 2015 futures series closed at ¥216.9 a kg, March
at ¥217.4, April at ¥218.6, May at ¥218.8, June at ¥219.4 and the contract for
delivery in July 2015 closed at ¥218.9 a kg.
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