Tyre industry demands duty-free import of 1 lk t rubber

RELATED NEWS JK Tyre net sales up by 18% to Rs 849cr Current year would continue to be tough: Apollo Tyres Apollo Tyres Q1 PAT up 4% at Rs 48.63 cr Dunlop buys UK's 2nd largest auto component co Schlegel Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

Kochi, July 30

With a serious crunch operating in the availability of natural rubber (NR), the tyre industry has reiterated its demand for duty-free import of 1 lakh tonnes of NR without any further delay.

The tyre industry, that consumes 57 per cent of the natural rubber produced in the country, is facing the worst ever raw material availability crisis. Over the last few days, the availability of sheet rubber has been woefully inadequate to meet the requirement of the industry that is already bearing the brunt of high rubber prices, Mr Rajiv Budhraja, Director General, Automotive Tyre Manufacturers' Association, said. Currently, domestic NR prices are ruling at a higher level than even international prices. Natural rubber accounts for 41 per cent of the raw material cost in the tyre industry, he said.

"It has never happened that the very availability of sheet rubber becomes an issue despite the fact that the natural rubber prices have touched a historic high. The average landed price of NR was Rs 134 during July, which is 51 per cent higher than the average price in September last year," he said.

contd on page 2...