Indian rubber growers and tire manufacturers argue over import duty
ERJ staff report (BC)
Kochi – Indian rubber growers and the country’s tire industry are once again at loggerheads over the issue of rubber imports, reports P K Krishnakumar for the Economic Times.
While Indian natural rubber imports are reported to have vaulted by 59 percent for the first six months of 2013, the domestic rubber price of RSS-4, the variety used by tire manufacturers, is reported to have dropped by Rs 20 (€0.24) to Rs 167.50 (€2.00)per kg over one month.
The Indian Rubber Growers Association (IRGA) has appealed to the government to increase the import duty of natural rubber from the current level of Rs 20 per kg to Rs 34 per kg and to suspend duty-free imports for six months to help the price of locally available rubber.
However, the Automotive Tire Manufacturers Association (ATMA) is reported to have said that such a move will throttle the industry, which is already passing through a difficult phase due to a slowdown in the automobile sector.
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Full story from Economic Times