India mulls rubber import tax cut

MUMBAI (Commodity Online): India is considering a cut in the import tax on natural rubber to help bulk consumers such as tire makers, whose input costs have mounted because of a local shortfall, Currently the import tax on natural rubber is 20%, translating to around Rs.30 per kg (65 U.S. cents) based on international prices.

The government is looking at capping the tax at Rs.20.46/kg (44 U.S. cents).

India's synthetic rubber imports surged 51.7% in April due to higher demand from tire makers, the state-run Rubber Board said Tuesday. Synthetic rubber imports during the first month of this fiscal year totaled 25,885 metric tons, compared with 17,065 tons a year earlier, the board said on its website.

Consumption of synthetic rubber increased 24.7% to 32,815 tons in April, with demand from tire makers climbing 31.7% to 22,872 tons, it added. Production during the month remained almost steady at 8,180 tons.

According to data from the Rubber Board, India's synthetic rubber output in April rose to 8,180 mt from 8,169 mt a year ago. Demand for synthetic rubber rose 24.7% on year to 32,815 mt from 26,315 mt, while imports rose 51.6% on year to 25,885 mt from 17,065 mt. Increase in demand from automobile tyre manufacturers mainly supported the growth in demand for synthetic rubber.