Rubber units expect increase in import duty up to 30%

Kochi, Jan 25 (KNN) Rubber MSMEs have asked for increase in import duty on finished rubber goods from 10 per cent to 30 per cent in the wake of substantial increase in import and dumping of finished rubber goods in India.

Overall import of rubber products in India has gone up to nearly 120 per cent from Rs 4,180 crore to Rs 9,202 crore in four years between 2011-12 and 2015-16, as claimed by All India Rubber Industries’ Association (AIRIA).

While stressing over the problems being faced by the rubber industries, AIRIA said that the country’s MSMEs are doing business with the highest duties on import of raw materials and one of the lowest duties on import of finished rubber goods.

This unfavorable structure is responsible for a surge in import of finished goods.

According to the President of AIRIA, Kamal K Chowdhury, nearly 80 to 90 per cent is avoidable as domestic rubber manufacturing units have capabilities to meet the demand but low import duties on rubber products, especially under FTAs, has led to indiscriminate imports.

Emphasizing the huge difference between the required and actual figures, association said that finished products can be easily imported as the import duty on rubber products is between 0 to 10 per cent, while the duty on raw materials for the rubber industry is between 5 and 70 per cent.

Elaborating the reason behind the increased cost of production, AIRIA said that not only is the import duty on raw materials is higher but duty is also levied on raw materials which are not produced in the country.

Rubber units stressing over the increase in the imports duty as presently the import duty on rubber manufactured products ranges between nil to 10 per cent, which has huge effects over the production in the MSMEs. (KNN)