India Ministry Insists on Rubber Import Duty Cut

India's Commerce Ministry insisted with its demand for duty cut on natural rubber imports to help domestic tyre industry, which is struggling on non availability of raw material.

According to Rubber Board, compared to global natural rubber price is Rs 6 lower than the domestic price. Domestic price is hovering at Rs 169 while the global market is quoted at Rs 163.

Since the natural rubber in the key raw material for tyre industry, lack availability and price variation do impact the industry severely, said experts.

The Commerce Ministry wants the Finance Ministry that the natural rubber import duty should be lowered to either Rs 20.46 per kg or 20% of the consignment, whichever is lower.

At present, import of raw rubber attracts about 20% duty, whereas on tyres it is 10%.