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Refuting the calls for raising the import duty on natural rubber, industrial rubber consumers have said the import of rubber was neither affecting the prospects of local farmers nor the conditions for domestic production.
Referring to the latest data released by the Rubber Board, consuming industries have alleged the increase in natural rubber imports had been just a fraction of the actual drop in domestic natural rubber production.
There were reports that in the light of a steep fall in prices, the Union government was planning to increase the import duty on rubber to 30 per cent from the present 20 per cent. This was based on the assumption imports were the reason behind the drop in domestic natural rubber prices.
During Apr-Jan current fiscal, natural rubber imports had gone up 14 per cent to 359,857 tonne as against 315,049 tonne in the same period last fiscal. Total import is likely to cross 400,000 tonne this financial year, which will be the highest-ever by the country.
Going by the current trend, India is likely to consume one million tonnes of rubber this fiscal. This means an over 40 per cent of India's requirement would be met through imports. All political parties from Kerala are exerting pressure on the Centre to hike the import duty.
Rajiv Budhraja, director general, Automotive Tyre Manufacturers Association (ATMA), said the gap between the domestic natural rubber production and consumption has widened to 276,065 tonne during the first 10 months of the current fiscal.
According to a Rubber Board study, as against a contraction of 100,000 tonne in domestic production of rubber in the first 10 months of the current fiscal, imports have gone up by just 45,000 tonne.
"The real worry is natural rubber consumption has picked up just 3.8 per cent during the first 10 months. Against the backdrop of the 'Make-in-India' campaign, the industry should be allowed to access cheap raw material so that the value addition takes place in India," said Mohinder Gupta, president of All India Rubber Industries Association (AIRIA).
According to the consuming industry, Rubber Board's projections in respect of natural rubber production have gone awry year after year, with the actual production always trailing projected figures by a long margin.
For the current fiscal also, the difference between the projected and the actual natural rubber production is a staggering 246,000 tonnes during the first 10 months alone, they said.
The prime consuming industries have stated rubber stocks at the end of January 2015 as given by the Board were distorted.
The stock figure is a derived one and is calculated by deducting off-take from availability. Given the sharp drop in production, rubber stock figures at the end of January 2015 should have declined by 78,000 tonnes, but the board has brought down the figures only by 28,000 tonne.
Gupta added the industry was keenly awaiting the formulation of the National Rubber Policy, which according to him, is expected to look at all the aspects of sector.
