In a bid to arrest the price fall in India, 17 India-based tyre companies have agreed to procure natural rubber from domestic market at 25 per cent rate higher than the international price
Rubber prices in India have been on a decline due to influx of imported rubber, which has grown from around 217,364 tonnes in 2012-2013 to around 325,190 tonnes in 2013-2014, a rise of almost 50 per cent, said a government official.
D S Rawat, secretary general of Associated Chambers of Commerce and Industry of India (Assocham), said, “Assocham considers that this development should set an example, particularly for other domestically produced commodities like cotton where the falling price of cotton would benefit the textile industry as well as consumers but would harm the farmers.”
Assocham represents the interests of trade and commerce in India and acts as an interface between industry, government and other relevant stakeholders on policy issues and initiatives.
Rawat added, “The tyre industry has demonstrated that there is a national stake in keeping the price above cost to the farmers, which the industry leaders must take into their planning.”
As per the agreement, Indian government would refund 50 per cent of the purchase tax to the tyre companies.
