Tyre industry seeks govt intervention after steep fall in rubber production
Updated: Jun 23, 2015 04:22:59pm
New Delhi, June 23 (KNN) After a steep fall in rubber production for the third consecutive year, the tyre industries have sought an immediate intervention by the government in order to raise domestic production.
As per the data released by the Rubber Board, there has been a significant decline of 11 per cent in first two months of the current fiscal. The fall in production comes on the heels of 16 per cent drop in production in FY-14 and 15 per cent drop in FY-15.
The fall in domestic rubber production has immensely affected the rubber driven industries. Lack of rubber production has emerged as a major concern for the industries that survive on rubber as a key raw material.
Automotive Tyre Manufacturers Association (ATMA) has said that with auto sector coming out of a long recession, the demand for natural rubber is expected to go up. The association, according to a media report, said that the tyre industry has put in large investment to meet the rising auto demand but the decline in rubber production is going to play the spoiler for the industry.
The decline in rubber production has widened the domestic production-consumption gap. For the previous fiscal year, the gap between production and consumption was calculated to be of 3.6 lakh tonnes. The gap is likely to increase further in the current financial year.
Mohinder Gupta, President of All India Rubber Industries Association, has said that uncertainty in domestic rubber availability is giving jitters to rubber MSMEs who do not have the wherewithal to have large inventories. (KNN/J)
As per the data released by the Rubber Board, there has been a significant decline of 11 per cent in first two months of the current fiscal. The fall in production comes on the heels of 16 per cent drop in production in FY-14 and 15 per cent drop in FY-15.
The fall in domestic rubber production has immensely affected the rubber driven industries. Lack of rubber production has emerged as a major concern for the industries that survive on rubber as a key raw material.
Automotive Tyre Manufacturers Association (ATMA) has said that with auto sector coming out of a long recession, the demand for natural rubber is expected to go up. The association, according to a media report, said that the tyre industry has put in large investment to meet the rising auto demand but the decline in rubber production is going to play the spoiler for the industry.
The decline in rubber production has widened the domestic production-consumption gap. For the previous fiscal year, the gap between production and consumption was calculated to be of 3.6 lakh tonnes. The gap is likely to increase further in the current financial year.
Mohinder Gupta, President of All India Rubber Industries Association, has said that uncertainty in domestic rubber availability is giving jitters to rubber MSMEs who do not have the wherewithal to have large inventories. (KNN/J)
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