MUMBAI (Commodity Online): India rejected the industry’s demand for a cut on natural rubber imports from 20% to 7.5%, said a statement of Rubber Board of India.
A panel, set up on the directives of the Delhi High Court, headed by the Rubber Board Chairman Sajen Peter, has decided to continue present import duty for natural rubber.
However, the panel, called for a mechanism to cap the customs duty burden on the consuming industries by levying the duty at a benchmark level, irrespective of global prices.
According to director general of the Automotive Tyre Manufacturers Association, Rajiv Budhraja, Demand for natural 41 rubber in India, the world's second-largest consumer, is growing by around 12% a year, but production is only expanding at 5%-6%.
During the January-June period, the country imported 836,093 tons of natural rubber, up 1% from a year earlier. China is the world's biggest importer of natural rubber. It purchases most of its supplies from Thailand, Indonesia a Malaysia, the world's leading natural rubber producers.
General Administration of Customs, China's natural rubber imports in June declined 12% from a year earlier to 115,752 metric tons. Imports were up 25% from 92,702 tons in May.
According to government and industry sources, India's imports of natural rubber will likely rise in the current fiscal year as local production is growing at a much slower pace than demand, mainly from tire makers.
(commodityonline.com)
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