The Automotive Tyre Manufacturers Association
(ATMA) said on Monday a shortage of carbon
black (a key ingredient for tyre manufacturing) in the domestic market has led to unplanned shutdown of factories.
In a representation to the commerce ministry, ATMA
asked the government to allow domestic tyre makers duty-free import of the raw material to the extent of the existing gap between demand and supply in order to enable them to continue with their planned production.
According to ATMA, the tyre industry
is left with no other choice but to import carbon
black to meet the domestic deficit, but a steep anti-dumping duty — amounting to approximately 40 per cent of the import price — is proving to be prohibitive.