The All India Rubber Industries Association (AIRIA), an association of over 1,400 small and micro industries, has urged the Center to raise the import duty on finished rubber products as it is lower than the duty on natural rubber shipments entering the country. Airia president Shashi Singh. Import duty on natural rubber is currently 25 percent or ₹ 30/kg, whichever is higher. The import duty on latex made from natural rubber is 70 percent. On the other hand, a 10 percent customs duty is levied on the import of finished goods, leading to an inverted customs structure.
“We demand that if the center cannot reduce the obligation to protect farmers, it is good for us. But there should be some policy where this reverse work structure can be controlled. People directly import products made of natural rubber or latex, such as gloves or other products. So our demand is that at least the import duty should be increased to prevent direct import of the final product, he told Businessline in an online interaction.
5 lakh tonnes NR shortage
India has sufficient capacity and capability to produce rubber products. “This will help realize the prime minister’s vision of Atma Nirbharata,” said Singh, who took over as president of AIRIA last month. AIRIA has approximately 3,000 members representing its members and focuses on how to obtain government incentives for micro, small and medium-sized enterprises. “We do strategic planning, promoting economic growth, responding to industrial challenges, sustainable practices and, above all, technological development and competitiveness in the global market. “That’s what I will focus on in my office”. India produces less than 8.5 lakh tons of natural rubber (NR) and the demand is 13.5 lakh tonnes. “We have a deficit of about five million tonnes which is covered by imports. Shipments to the country will increase as the demand increases,” Singh said.