New Delhi: The Automotive Tyre Manufacturers' Association on Friday said it has sought temporary duty-free imports of natural rubber under a quota system, citing a 37 percent domestic supply deficit and a sharp rise in prices to Rs 300 per kg.
In a letter to Commerce and Industry Minister Piyush Goyal, the Automotive Tyre Manufacturers' Association (ATMA) sought immediate permission for imports under Tariff Rate Quota (TRQ), limited to the assessed gap between domestic demand and supply, until market conditions normalise.
Domestic natural rubber prices have surged nearly 62 per cent from the November 2025 average of Rs 186 per kg, with supplies remaining inadequate even during the peak tapping season, the industry body said.
"Tyre manufacturers rely on the peak tapping season to secure domestic rubber for their production schedules. This year, supplies are falling short even during these months, while procurement costs have risen sharply.
"A temporary duty-free quota, limited to the assessed shortfall, would help manufacturers maintain production while protecting the interests of domestic rubber growers," said Arun Mammen, Chairman, ATMA.
India produced 9.05 lakh tonnes of natural rubber in FY26 against consumption of 14.27 lakh tonnes, leaving a shortfall of nearly 37 per cent.
Natural rubber imports attract Basic Customs Duty (BCD) of 25 per cent or Rs 30 per kg, whichever is lower, and finished tyres attract a duty of 10 per cent, rising to 15 per cent for certain categories, including truck and bus radial and passenger car radial tyres.
Tyre manufacturers are also facing cost pressures from higher prices of synthetic rubber, carbon black and other petroleum-based inputs. The West Asia crisis has further pushed up crude oil prices and freight and logistics costs, ATMA said.
India's tyre industry has an annual turnover of around Rs 1 lakh crore and exports exceeding Rs 27,000 crore. Tyre exports grew 16 per cent year-on-year in the first quarter of FY27.
ATMA said access to natural rubber at competitive prices was critical to sustaining domestic manufacturing, ensuring production continuity and maintaining export competitiveness.
India produced 9.05 lakh tonnes of natural rubber in FY2025-26 against consumption of 14.27 lakh tonnes, leaving a supply gap of 5.22 lakh tonnes, or around 37 per cent of consumption, said the tyre makers' body.
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