Rubber user industries like tyre makers were able to import only about 10,000 tonnes of natural rubber even though the government had allowed them to import up to 40,000 tonnes by March at a concessional duty.
"An estimated 10,000 tonnes of natural rubber has been imported out of the total limit of 40,000 tonnes by the industry," an industry source told PTI.
A senior Rubber Board official also said, "import has not been very significant despite the duty reduction by the government."
Industry sources attributed the lower imports to procedural delays and high global prices.
In December last year, the government had reduced import duty on natural rubber up to 40,000 tonnes to 7.5% from 20% earlier with a view to boost domestic supply and to check rising prices.
Though the government's customs notification on duty cut came on December 22, the whole exercise of the selection of the candidates lingered till mid-February, which left very less time for placing large volumes of rubber for import, the industry sources said.
High international prices of natural rubber was also responsible for few applicants coming forward to avail the scheme, they added.
During the first quarter of the calendar year, global prices of natural rubber have remained higher than the domestic rates.
Global prices of natural rubber are ruling firm at Rs 255.71 per kg, while domestic prices are Rs 232 per kg.
According to the Central Board of Excise and Customs (CBEC), natural rubber import beyond March 31, 2011 will attract duty of 20 per cent or Rs 20 per kg, whichever is lower.
