• Twitter
  • Facebook
  • Instagram
  • Subscribe
  • Free Newsletter
  • My account
  • Log In
Tyrepress
  • 0Shopping Cart
  • NewsNews
    • Latest News
    • All Headlines
    • Company News
    • UK News
    • Product News
    • International News
    • Retreading
    • Career Tracks
    • Motorsport
    • Video
    • Tyrepress Videos
  • Data
    • Leading Tyre Manufacturers
    • Leading Retailers (UK)
    • Social Media Ranking
    • Online Branding
    • Brand Finance rankings
    • Blue Light Fleet Analysis
    • Astutus Research analysis
    • Premium Report
  • Features
    • Tyre Industry Conference 2020
    • Online Tyre Business 2020
    • Aftermarket 2020
    • Tyre Recycling 2020
    • Kick-starting your business webinar May 2020
  • Business Directory
    • Browse Entries
    • List Your Company on the Business Directory
  • Jobs
    • Situations vacant
    • Career Tracks
  • Classifieds
  • Magazine
    • Latest Issue
    • Read Tyres & Accessories Magazine online
    • Magazine Archive
  • Shop
    • Subscription Shop
    • Report Shop
    • Directory Shop
  • About
    • Company Profile
    • Media Information
    • Frequently Asked Questions (FAQs)
    • Legal
    • Contact Us
  • Search
  • Menu
You are here: Home1 / News2 / Rubber Prices May Force Production Cuts in India

Rubber Prices May Force Production Cuts in India

Date: 12th November 2010 Author: Admin Comments: 0

Natural rubber prices have been the bane of tyre makers in India of late, and on November 12 the New Delhi based Financial Express reported that major tyre manufacturers in India are considering production cuts to minimise on losses arising from prices that have risen above Rs 200 (£2.77) a kilogram.

“We have no option but to scale down production,” said Automotive Tyre Manufacturers Association (ATMA) chairman Neeraj Kanwar said in a letter to Indian finance minister Pranab Mukherjee on November 11. Kanwar, who is also vice-president and joint managing director at Apollo Tyres, urged for a meeting to resolve the rubber crisis. In addition to high prices, Indian manufacturers also have to deal with declining domestic rubber supplies and high duties on imported natural rubber.

A 20 per cent import duty is currently attached to natural rubber, and to-date calls from tyre makers for a 100,000 tonne allowance at a concessional rate of 7.5 per cent have not been heeded. Demands for India’s government to change the import duty from a percentage to a flat rate of Rs 20 per kilogram have also proven fruitless so far. “At current prices, the import duty component alone amounts to around Rs 40 per kilogram, which makes it unviable,” commented ATMA director-general Rajiv Budhraja.

The timing of this ‘rubber crisis’ has been unfortunate. Neeraj Kanwar points out that of late encouraging growth has been seen in domestic tyre demand and the Indian tyre industry is geared up for major expansions and green field projects to meet the demand growth in tyres. Yet Indian manufacturers will struggle to compete against their Chinese counterparts given that duties on imported sheet rubber there are currently 5.2 per cent; the import duty structure in China allows importers to pay 20 per cent or RMB 1600 (£149.50) per tonne, whichever is less.

Related news:

  1. Indian trucking organisation threatens Apollo boycott
  2. Rubber Exports Causing Indian Tyre Manufacturers Angst
  3. Rubber Prices Reach Six-Decade High
  4. Raw Material Costs Prompt Apollo to Consider Further International Investments
Comments
Comments closed
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • Per E-Mail teilen

Related Tags

Apollo Tyres, China, financials, India, prices, raw materials, rubber

Advert Location 28

Top five articles this week

Advert Location 10

© 2020 - Tyrepress
  • Twitter
  • Facebook
  • Instagram
  • WhatTyre
  • Reifenpresse
  • PneusNews
Native Plants Helping the Environment & Bottom Line at BBTS New TRIB Address Details
Scroll to top