Tyre manufacturers are looking towards north east to grow natural rubber which is the primary raw material used in tyre manufacturing. This is an after effect of the move towards indigenous production by the government. According to the current rule, manufacturers and traders are allowed to import tyres but it cannot exceed 40 percent of their earlier imports. And even that has to be phased out over a period of three years. However, the original equipment manufacturers that import tyres for vehicle exports have been allowed to ship it. Sources have told to Times of India that licenses will be granted on a one-time basis where BIS stamping has been done.
Owing to the increased dumping in form of shipments from China, Thailand and other countries, the Indian manufacturing was getting affected. Even though the country has enough manufacturing capacity, the dumping from these countries was creating a flux of cheaper imports having a direct bearing on the Indian manufacturing sector. This is why government had licensed tyre imports in June. The intention was to lend a helping hand to the domestic industry which had invested heavily in creation and multiplication of capacity but adversely affected by cheaper imports.
As part of an initiative by the commerce and industry minister Piyush Goyal, tyre manufacturers will invest around Rs 1,100 crore for growing high-yielding varieties of natural rubber in the northeast. Against an average yield of 1,200 kg per hectare, the target is to raise it to around 1,500 kg a hectare. India is an natural rubber-deficit country with production and consumption of natural rubber standing at 712,000 million tonnes and 11,34,210 million tonnes respectively in 2019-20.
“Around 70 percent of natural rubber is consumed by the auto tyre sector in India. This would also contribute to socio-economic development of northeast, while improving the standard of living of the beneficiaries, the majority of whom hail from tribal and other resource-poor communities. The improvement in the quality of processed forms of natural rubber will help the farmers get a better price for their produce as well,” said an officer.
