The major obstacle facing the industry is the government stipulation restricting imports only through Vishakhapatnam and Kolkata ports. The policies of the government are also draining the tyre manufacturering industry. With an average eight per cent drop in product prices and increase in input cost the industry likely to be forced into a phase of consolidation. Anil Sampat, outgoing president, All India Rubber Industry Association (AIRIA), at the 51st annual genral meeting held recently had observed that,