Kerala, India - In India, tire companies have accepted a formula drawn up by government officers: agreeing to procure rubber at 25 percent more than the market price in return for tax reductions.
The development was detailed in an official report on a meeting between Kerala chief minister Oommen Chandy and industry executives . These were indicated to have included JK Tyre, MRF, Bridgestone and Apollo Tyres.
As a result of the agreement, The Hindu newspaper reported that the price of rubber had risen from Rs.115/kg to Rs.130.45/kg in the days after the meeting in December.
The newspaper said the government had decided to go for the new arrangement because rubber procurement through state agencies had proved unsuccessful.
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