The All India Rubber Industries Association (AIRIA) has sought removal of anti-dumping duties on import of raw materials stating it was making the industry uncompetitive. It also demanded an immediate import of 100,000 tonne natural rubber to bridge the supply-demand gap.
In its pre-Budget submission to the finance ministry, the industry body said levy of anti-dumping duties on carbon black and rubber chemicals had made products more expensive in comparison with imported finished ones. High interest cost and energy rates had led to many of the SME units closing their operations.
Similarly, the levy of anti-dumping duties on high styrene butadine rubber has made the Indian footwear products more expensive leading to a surge in import from Nepal, Sri Lanka and China.
On the other hand, all the rubber products are being imported into the country with normal rate of duty without facing any anti-dumping provision. With over 15,000 rubber products, it is difficult to prove the dumping charges and most of the manufacturers are small who do not have the resources to initiate the anti-dumping proceedings per the law. India has 5,000-plus small and tiny rubber based units.
It also said the ratio of natural rubber consumption was divided equally between tyre and non-tyre segments. However, the nontyre segment was fast ceding to the tyre segment.
“What is worrisome is the fact that not only the percentage of rubber consumption but even the absolute consumption by the small-scale non-tyre sector has dwindled over the years. The Rubber Board has also taken cognisance of this fact,” said Vinod Simon, president AIRIA.
According to him, the import of even those raw materials, which are not indigenously produced, is subjected to high rate of customs duty.
AIRIA has, therefore, sought waiver of customs duty on raw materials not manufactured domestically such as butyl rubber, SBR grade 1500/1700 and other hi-tech synthetic rubbers and polyester tyre cord.
Consumption of natural and synthetic rubber is constantly increasing as against production. Availability is an issue even at high prices. Therefore, there is urgent need to import 100,000 tonne of rubber to bridge the demand supply gap, it said.
The duty on latex continues to be 70 per cent and has been only recently capped at Rs 49 per kg. However, latex being a wet form of natural rubber, the duties should be comparable with natural rubber only, it said.
AIRIA also asked for raising the exemption limit of SSI rubber units to Rs 10 crore and for excluding the value of exempted goods from the turnover because of unusual price rise in natural and synthetic rubber from Rs 125 per kg to Rs 250 and $1.50 to $4.2 per kg respectively over the last two years.
