Automotive tyre manufacturers today sought the commerce ministry's intervention to address the "shortage" of key raw material carbon black, warning that any shortfall in tyre production would propel imports and hit domestic industry.
Seeking the commerce ministry's intervention, the Automotive Tyre Manufacturers Association (ATMA) said unplanned cuts in tyre production arising from shortfall in carbon black would lead to higher imports of finished tyres thereby discouraging value addition within the country.
The ATMA recently claimed that shortage of carbon black had led to unplanned shutdown of factories. Carbon black makers' body CBMA on Sunday disputed the claim, saying there are surplus stock of the raw material.
The tyre manufacturers' body today asked the carbon black manufacturers body to reveal the stock that is available for offtake.
Denying reports of shortage of the key raw material used in tyre industry, carbon black manufacturers had urged the government to keep import duty to safeguard domestic producers and jobs.
The Carbon Black Manufacturers Association (CBMA) said there is a surplus and demand is weak in domestic markets due to cheaper imports.
"The assertion by carbon black manufacturers about surplus carbon black is at sharp variance from market realities. Even non-tyre rubber industries have expressed serious concern on non-availability of carbon black," ATMA Convener, Supply Chain and Resources (SCR) Mohan Kurian said.
According to the ATMA, if the crunch in carbon black continues, it will lead to 10 per cent drop in capacity utilisation in tyre production during the current quarter.
"There is need to curb the export of Carbon Black from the country so that domestic demand is met and tyre production is not affected," it added.
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