Tyre makers favour rubber imports amidst price slip

The natural rubber imports in India hit the record breaking total consumption of 22.5% in 2012 to 2013 as lengthening the gap of the local and overseas prices cues the tyre makers to put up imports.

October-March is the usual import period of India, the world’s fourth biggest producer of natural rubber as this is the period when the weather is good for tapping.

But an industry official has said that the tyre makers are making new import deals as rubber in the local market is still expensive because the farmers are holding back its supplies.

“Tyre makers were actively signing import deals in September. A difference of R The difference between local and overseas prices to over Rs 45 per kg,” said George Valy, president of the Indian Rubber Dealers’ Federation.

India imports rubber from Malaysia, Thailand and Indonesia. It makes imports viable even if there is a duty. Tyre makers will continue to import in the coming months to save more money. (RJA)