Question : Import Duty on Natural Rubber

(a) whether an upward trend has been noticed in the consumption of rubber especially due to increased demand from automobile sector recently;
(b) if so, the details thereof;
(c) whether tyre manufacturing industry has requested the Government to reduce the import duty on natural rubber;
(d) if so, the reaction of the Government in this regard; and
(e) the efforts made by the Government to increase the production of natural and artificial rubber?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI C. R. CHAUDHARY)

(a) & (b): Consumption of Natural Rubber (NR) has increased from 10,44,075tonne in 2016-17 to 11,12,210tonne in 2017-18 mainly due to rise in the demand of auto tyre sector. The details are as under:
Consumption of NR (Tonne)
2016-17 2017-18 (Provisional) Growth
(%)
Auto Tyre Sector 7,07,335 7,72,162 9.2
Non-Tyre sector 3,36,740 3,40,048 1.0
Total 10,44,075 11,12,210 6.5
Source : Rubber Board
(c) & (d):There have been demands from Tyre Manufacturing Industry to reduce the import duty on NR. In view of the prevailing situation of the rubber sector, it has been decided to maintain the present level of import duties on Natural Rubber.

(e): To promote production of Natural Rubber in the country the Government through the Rubber Board is implementing the scheme “Sustainable and Inclusive Development of Natural Rubber Sector” wherein support is provided for rubber plantation development and extension, rubber research, rubber processing & marketing, infrastructure development, Human resource development etc.

There is no local manufacturer of Butyl/Halo Butyl in India at present, and the requirement is met through import.During the last 4 years, Indian companies have invested over 4000 crores in establishing production facilities of Synthetic Rubber. As a part of “Make in India” Reliance and Russian petrochemical major M/s Sibur have joined hands for establishing manufacturing base for Butyl rubber in India, and have formed Reliance Sibur Elastomers Pvt. Ltd. (RSEPL).
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