High Global Prices Hit Tyre Firms' Rubber Imports

The widening gap between domestic and international prices of natural rubber has made import impossible for local tyre companies. Industry says that it has missed the opportunity due to delay in government’s import policy.
“In a dynamic situation like this, the policy should also be dynamic,” said Rajiv Budhraja, director general, Automotive Tyre Manufacturers Association (ATMA). “If the policy was in place sufficiently early, we could have used the import option when the price situation was favourable,” he said.
International rubber prices have jumped from `226.39 per kg in the first week of January to `291.14 per kg by Thursday (February 17), an appreciation of 29%. Domestic prices touched `240 per kg on Thursday (February 17), a 16% rise during the same period. At this level, local prices are lower by `51 per kg.
(Economic Times, India, February 18, 2011)