The All India Rubber Industries Association has urged the Centre to reduce the custom duty on import of natural rubber to cater to the requirement of the domestic rubber industry.

Shashi Kumar Singh, president, AIRIA in a pre-budget submission, said the availability of raw materials in the country is a big challenge and the industry is on the verge of closure due to escalating prices of raw materials.

Current duty

Import duty on natural rubber is around 25 per cent or Rs30 per kg whichever is higher and natural rubber latex attracts at 70 per cent. If it is not possible to remove the import duty, it should be reduced to 10 per cent to help the industry to meet the demand, he said.

There should be a uniform rate of GST for rubber and thermoplastic products for automotive parts. It is also requested to take appropriate steps to remove the ‘Inverted Duty Structure’ for items like medical gloves, surgical and examination gloves, Folley’s Catheters and essential products for the general public like beds made of foam, and even balloons for children.

On the antidumping duty, AIRIA said the maximum amount has been imposed on Butyl (IIR) Rubber which is $931 per tonne on Russian rubber which was the most cost effective. Based on current booking rates of IIR prevalent in the international market for equivalent grades, this will result in an increase of landed price of IIR by around 45-50 per cent. This increase will result in an increase of cost of our products such as pharmaceutical and hygienic stoppers /closures, Butyl Tubes etc by 25-30 per cent and make rubber products more expensive than the imported products.

Unviable for MSMEs

Domestic manufacturers have already increased their prices by around Rs30 per kg. Therefore, the products of MSME are not viable. The association urged that the order be reversed and relief be given to MSME units who are manufacturing quality rubber products.

The Indian footwear industry is facing a significant challenge due to the zero-duty import policy for footwear from countries like Bangladesh and Nepal. This creates an unfair advantage for foreign manufacturers, making it difficult for local industries to compete. The government should consider implementing a uniform import duty policy for finished footwear from all countries.

The import of natural rubber only through Chennai and Nhava Sheva ports is hitting production with rise in logistic cost, lead time and pricing. It is required for immediate reconsideration of the removal of port restrictions allowing import through all ports, he said.

e.o.m.