Decrease In Rubber Output Hits Tyre Manufacturers
Indian tyre makers are concerned with the decrease in the production of natural rubber. They have also urged the Union Ministry of Commerce to take necessary steps making sure that the industry is not hit hard by this shortfall and there is easy availability of material for the tyre manufacturers. During the April-January period of this financial year, natural rubber consumption grew by 12 percent while the production fell by 7 percent, as said in a communication from the Automotive Tyre Manufacturers Association (ATMA).
The gap between Rubber production and consumption has widened during the current financial year to 4.63 lakh tonnes from the April-January period of the last financial year, where the gap was 3.16 lakh tones. The Rubber Board shows that domestic rubber production was 5.6 lakh tones whereas the consumption surged 10.2 lakh tonnes between April and January.
Director General, ATMA, Rajiv Budhraja told that the natural rubber consumption in the country had surpassed the 10 lakh tonne mark in the first 10 months of the current financial year. The tyre manufacturers also said that as the domestic rubber production is meeting only 55 percent of the total consumption in the country, there is an increase in the dependence on imports by 30 percent as compared to the previous year.
This year the problem has been aggravated by the extreme events of heat and dryness, which may even prolong. However, the relief is that despite a shortage of domestic production, the prices will not increase because conditions are good and production is largely normal.