Rubber and tyre industries have stated that the Rubber Board data for the first three quarters (April-December) of this fiscal supports industry’s view that import of rubber played no role in drop in domestic prices.
According to the industry, the price drop was more in line with softness being witnessed in the commodity internationally.
The latest Rubber Board data revealed that rubber imports have increased by 91,135 tonnes. On the other hand, the decline in domestic rubber production in the same period is 70,200 tonnes leaving a net excess of only 21,843 tonnes.
The data confirms the industry view that the drop in domestic rubber prices has nothing to do with increase in imports. Over a total production of 6,27,000 tonnes in the April-December period, the excess availability of just about 20,000 tonnes (through increased imports) is too insignificant to dent prices, Niraj Thakkar, President, All India Rubber Industries Association (AIRIA), said in a statement.
A view has been formed that there has been a steep surge in rubber imports which led the government to increase import duty by 50 per cent. Now the data released by Rubber Board has shown a drastic cut in domestic production too, Rajiv Budhraja, Director General, Automotive Tyre Manufacturers Association (ATMA), said.