Question : Consumption and Production of Rubber

(a) whether there has been an increase in the consumption of rubber especially due to rise in the demand of automobile sector recently;
(b) if so, the details thereof including the extent to which demand is met by domestic production;
(c) whether the Tyre Manufacturing Industry has requested the Government to curtail import duty on natural rubber;
(d) if so, the reaction of the Government thereto; and
(e) the efforts made by the Government to enhance the production of natural rubber and artificial rubber in the country?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)
(SMT. NIRMALA SITHARAMAN)

(a) & (b). Consumption of Natural Rubber (NR) has increased from 994,415 tonne in 2015-16 to 1044,075 tonne in 2016-17 mainly due to rise in the demand of auto tyre sector. The details are as under:
Consumption of NR (Tonne)
2015-16 2016-17 (Provisional) Growth
(%)
Auto Tyre Sector 663,495 707,335 6.6
Non-Tyre sector 330,920 336,740 1.8
Total 994,415 1044,075 5.0

Production of NR in the country in 2016-17 was 691,000 tonne (provisional) against the consumption of 1044075 tonne of NR in tyre and non-tyre sectors.
(c)& (d) There have been demands from Tyre Manufacturing Industry to rectify the duty structure as the Basic Customs Duty on Tyre is 10% as against that of Natural Rubber duty is 25% or Rs. 30/kg. whichever is lower. The matter was examined in the Department and in view of the prevailing situation of the rubber sector the proposal was not agreed to.

(e) In order to increase 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 plantation development and extension, strengthening research, technology upgradation and market development, Human resource development etc. So far as artificial/synthetic rubber is concerned, Chemical & Petrochemical Industry is delicensed and decontrolled and Government acts as facilitator in this sector.
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