INSUBCONTINENT EXCLUSIVE:
availability of natural rubber due to heavy rains in Kerala.
Already battling higher costs because of the increasing price of raw materials
Automotive Tyre manufacturers Association
in Kerala, the largest rubber producer in the country, had remained affected in June and July
In the first quarter of the current financial year, the country saw a rubber deficit of 1.76 lakh tonnes as consumption outstripped
Pandey, vice president (materials), JK Tyres
The prices are likely to remain high as crude oil, from which several raw materials are derived, continues to be costly, he said.
Sluggish
availability of rubber has pushed tyre makers to depend more on imports
Block rubber, the preferred import of tyre units, is priced about Rs 40 per kg cheaper in overseas markets than the domestic sheet rubber,
whose price touched Rs 132 per kg on Saturday.
The depreciation of the rupee against the US dollar has offset the gains, Pandey said
Almost two-thirds of rubber imported to India is through duty paid route
India imported a record 4.69 lakh tonnes in 2017-18.
Although tyre makers fear that their profits would be hit, they said revenue would be
on target as original equipment (OE) tyres were selling well
In April-July period OE sales of medium and heavy vehicles grew 86%, light commercial vehicles 41% and those of truck and bus radials 20%
from a year ago, according to Budhraja
