ATMA opposes India rubber import duty increases
ERJ staff report (LMH)
Kochi, India – The Indian Automotive Tyre Manufacturers Association says it opposes the national government’s decision to increase import duty on rubber, claiming it will have long-term adverse consequences for the industry.
Anant Goenka, chairman of ATMA, said in a 27 Feb statement that the increase in duty on natural rubber from Rs 20 per kilogram to Rs 34 per kilogram will have far reaching and adverse consequences for the tire industry and its long-term impact will be felt on the entire value-chain of the rubber sector.
He added, "The increase in duty on NR will severely impact the industry at a time when the automobile sector is witnessing a sharp negative growth in major vehicle categories including commercial vehicles, leading to a demand slowdown in the tire industry as well."
Goenka noted that commercial vehicle tires, a key sector for rubber consumption, comprise over 60 percent of Indian tire industry turnover.
ATMA said that in the last year, the gap between domestic production and consumption of rubber rules over 60 kilotonnes. In this financial year production is expected to fall behind consumption by 50 kilotonnes despite the slowdown in the economy .
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Website of Automotive Tyre Manufacturers Association