Less duty on finished Chinese rubber product encourages dumping: AIRIA

New Delhi, June 18 (KNN) The Rubber industry in the country believes that less duty in Chinese finished rubber product encourages dumping of Chinese material in India posing a threat to the domestic industry.

Talking to KNN, Tej Bhatt Deputy Secretary of All India Rubber Industries Association (AIRIA) said that there is shortage of raw material in domestic market.

He further explained “we don’t have sufficient raw material in India. If it is available then it is not a competitive material in Global market. If you import the raw material from overseas, then there are huge taxes. Then making goods are uneconomical here.”

Influx of cheap imports from China is hurting the Rubber MSME sector. The sector feels that tariff concessions offered under free trade agreements could be leading to a surge in imports.

“Excise and import duties are high on raw materials. Duties are less in finishing goods that encourages the Chinese material,” he added.

When asked about the condition of rubber exports, he said that as far as exports are concerned, Indian industry is doing well in the international market.

"We are exporting to all the developing countries. Exports are growing but not at that high level," he said.  

Rubber units spread across the country manufacture around 35,000 different rubber products which find usage in auto, defence, healthcare, agriculture and various other sectors. (KNN Bureau)