THE RUBBER Board of India had released a report indicating that the increase in import of natural rubber (NR) pulled down the domestic price of RSS-4 grade, and which was affected by the price crash in the global market.
This report raised the ire of tyre and non-tyre rubber consuming industry associations that they critiqued the data of what they say were false claims.
Local NR producers had been complaining against the influx of NR imports, which they alleged contributed to the decline of domestic prices of rubber sheets.
According to the data, in April-December of 2013-14, NR imports rose by 91,135 tonne to a total of 2,64,576 tonne, compared to 1,73,441 tonne imported during the same period of 2012-13. The decline in domestic NR production in the same period was 70,200 tonne, leaving a net excess of only 21,843 tonne.
Industry groups, All India Rubber Industries Association (AIRIA) and the Automotive Tyre Manufacturers Association (ATMA) contended that the release of data by the Rubber Board reflects the board’s belief that the drop in domestic NR prices has nothing to do with increase in imports. “Over a total production of 6,27,000 tonne in the April-December period, the excess availability of just about 2,10,000 tonne is too insignificant to dent prices. This is not justifiable to warrant increase in import duty,” said AIRIA President, Niraj Thakkar.
The Indian Rubber Dealers Federation said that imports affected both the growers and the dealers. A number if dealers have gone out of business due to the influx of these imports. Most of the growers are small farmers and imports from countries like Vietnam and Indonesia, where rubber is cheaper than in any other rubber producing countries.
Meanwhile, India has raised import duties on NR by 50% to limit imported rubber coming into the local market, and thus pushing the local prices to their lowest in 3-1/2 years.