Tyre manufacturers will import 30,000 tonne natural rubber according to Onkar S Kanwar, vice president, Appollo tyres. He said here that import would be economical as international price level is much lower than that in India.
Due to pressure from the tyre manufacturers for import of natural rubber, the price level had slashed by an average of Rs 2 per kg in Kochi market.
According to sources here the prices will be slashed further as selling pressure is mounting up. At present, RSS 4 grade is being traded at Rs 34 per kg and lot variety at Rs 31 - Rs 31.50.
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Onkar S Kanwar said that RSS 3 grade rubber which was equivalent to that of RSS 4 in India was available in the international market at Rs 29 per kg.
The per kg import duty would be around Rs 7.25 and the clearing charges would come around Rs 2. The total landing cost will be Rs 38.25 per kg. Whereas the current internal market price for RSS 4 variety is Rs 34 per kg and the purchase tax will be Rs 4.08.
Adding the transportation charges the total cost will come around Rs 40.50 per kg. Hence the tyre manufacturers are planning to import immediately, he said.
The tyre companies as a tactics to control the market had withdrawn from the market last week. The market sources here told Business Standard that the tyre manufacturer's propaganda regarding the import was a move to make the market a buyer