India: Rubber sector urges higher import duties

The All India Rubber Industries Association has reiterated its request for a higher import duty on rubber-finished products in order to advance the interests of local producers and farmers.

Shashi Singh, the President of AIRIA, stated that the decline in natural rubber prices is primarily attributed to oversupply on a global scale. He mentioned that countries like Thailand, Vietnam, Indonesia, Malaysia, and India have substantially augmented rubber cultivation to meet the demands of the automotive industry.

Singh outlined various factors influencing rubber prices, including demand and supply dynamics, export and import patterns, currency fluctuations, the utilization of synthetic rubber, and the exploration of alternative materials. He noted that India presently holds the sixth position globally in natural rubber production, contributing to 5.8 percent of the total output.

Singh attributed the decrease in prices, which has proven advantageous for both the tyre and non-tyre sectors, to sluggish demand from China and the European energy crisis. He highlighted the challenges encountered by rubber cultivators, such as price fluctuations, climatic variations, issues related to trees, and shortages in labour.

Recently, the government took steps to bolster support to rubber plantations by increasing aid by 23 percent, amounting to Rs 7.08 billion, over a span of two years, aiming to stimulate cultivation.

Read more at Global rubber market news

Reference : Global rubber market news