Government is looking into the tyre industry's demand to impose anti-dumping duty on Chinese tyres to curb cheaper imports.
"Influx of cheap imports from China is hurting the rubber MSME sector. Tariff concessions offered under Free Trade Agreements could be leading to a surge in imports. Dumping of finished rubber products also can't be ruled out which is causing distress especially for the sector," Rubber Board Chairman A Jayathilak said today.
He was speaking at the National Rubber Conference organised by All India Rubber Industries Association (AIRIA).
"Tyre industry has filed a petition before the Directorate General of Anti-Dumping & Allied Duties (DGAD) for imposing anti-dumping duty on import of Chinese tyres and it is being examined," Jayathilak said on the sidelines of the event.
India's import of truck and bus radial tyre (TBR) jumped by 64 per cent to 12.8 lakh units in 2015-16 from 7.8 lakh units in the previous fiscal.
Citing customs data, the domestic manufacturers' body Automotive Tyre Manufacturers Association (ATMA) had said in the last two years, import of TBR has gone up by 2.5 times. ATMA has called for anti-dumping measures on import from China as it accounted for a major chunk.
The chairman asked the industry to participate actively in the discussions on anti-dumping and safeguard measures organised by the government.
"Rubber Board places equal importance on the development of both natural rubber producing and consuming interests. Both industry and plantations are equally close to our heart. We cannot take sides," Jayathilak said.
The rubber industry fits in perfectly with the government's initiatives of Make in India, AIRIA President Mohinder Gupta said.
Rubber units spread across the country manufacture around 35,000 rubber products, which find usage in auto, defence, healthcare, agriculture and various other sectors, he said.
