Tyre industry has opposed the Government’s decision to enhance the import duty on natural rubber, saying that it will have adverse consequences.

It is reported that the Government has hiked the import duty significantly from Rs 20 per kg to Rs 34 per kg.

Anant Goenka, Chairman, Automotive Tyre Manufacturers’ Association (ATMA), in a statement issued here stated that the decision to restrict imports will have far reaching and adverse consequences on the tyre industry and its long-term impact will be felt on the entire value-chain of rubber sector.

The increase in duty on natural rubber 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 demand slowdown in tyre industry as well.

Commercial vehicle tyres account for over 60 per cent of the tyre industry turnover and is a major segment for rubber consumption, he said.

ATMA said that the import of natural rubber is inevitable in view of the widening gap in domestic production and consumption.

(This article was published on February 27, 2013)
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