“As it is, domestic Tyre Industry is facing the ongoing concern of shortfall in overall availability of natural rubber (NR) on a regular basis. Carbon black
shortage has only added to the woes of Tyre Industry in India”, said Mohan Kurian, Convener, ATMA Supply Chain & Resources
Notwithstanding domestic crunch, steep anti-dumping duty
has been imposed on carbon black
imports from China, the single largest producer of this raw material in the world accounting for around 40 per cent of its global production.
“Sustainable ways of improving raw material availability for the tyre industry need to be worked out for the continuation of Make in India
drive in this vital sector. Domestic Tyre Industry is anticipating good growth in tyre demand after a prolonged period of overall slowdown. It becomes imperative to improve the carbon black
availability situation urgently”, said Kurian.
According to ATMA, tyre industry is left with no other choice but to import carbon black
to meet the domestic deficit. However steep anti-dumping duty
amounting to around 40 per cent of the import price is in place in India making such duty paid imports almost prohibitive.
The unplanned cuts in tyre production due to the shortfall in carbon black
availability would only lead to higher imports of finished tyres from outside India thereby discouraging value addition within the country. Besides, substantial investments made by the Indian Tyre Industry in capacity creation and enhancement, primarily in truck & bus radial categories, will suffer due to the shortfall of this essential raw material, said ATMA.
has asked the Government to allow tyre companies to import carbon black
on a duty-free basis to the extent of the existing gap between demand-supply to enable the domestic tyre industry continue with its planned production.
applicable on carbon black
imports from China needs to be waived till such time the domestic availability improves. At the same time, export of carbon black
from India needs to be regulated by way of fixing a minimum (higher) export price and/or quantitative restriction.
As carbon black
is a critical raw material for the manufacture of tyres and the entire transport sector mobility is dependent on tyres, concerted efforts are made by the government on a long-term basis to encourage carbon black
manufacturing capacity within India as a part of the ‘Make in India’ initiative, ATMA
According to ATMA, the shutdown of Continental Carbon
plant at Ghaziabad over the past two months has further reduced the domestic availability of carbon black.
Steps need to be taken to restart the plant urgently (after ensuring that the plant meets all statutory regulations) so that availability issue of carbon black
could be addressed to some extent.