Scrap anti-dumping duty, says AIRIA.

KOCHI: In its pre-Budget submission to the finance ministry, the All-India Rubber Industries Association (AIRIA) has sought removal of anti-dumping duties on the import of raw materials, stating it is making the industry uncompetitive.

The industry body said levy of anti-dumping duties on carbon black and rubber chemicals had made products more expensive in comparison with imported finished ones. High interest costs and energy rates have led many SME units closing their operations, the body said.

Similarly, the levy of anti-dumping duties on high styrene butadine rubber has made Indian footwear products more expensive leading to a surge in imports from Nepal, Sri Lanka and China. These rubber products are being imported into the country with normal rate of duty without facing any anti-dumping provision.

With over 15,000 rubber products, it is difficult to prove the dumping charges. Most of the smaller manufacturers do not have the resources to initiate anti-dumping proceedings as per law. India has 5,000-plus small and tiny rubber based units.

AIRIA also demanded imports of 100,000 tonnes of natural rubber to bridge the supply-demand gap. "Consumption of natural and synthetic rubber is constantly increasing as against production. Availability is an issue even at high pricesTherefore, there is the urgent need to import 100,000 tonnes of rubber to bridge the demand supply gap," AIRIA said. in its pre-Budget submission.

It also said the ratio of natural rubber consumption was divided equally between tyre and non-tyre segments. However, the non-tyre segment is fast ceding territory to the tyre segment, the industry body said.

AIRIA president Vinod Simon stated that not only the percentage of rubber consumption but even the absolute consumption by the small-scale non-tyre sector has dwindled over the years. According to him, imports of even those raw materials, which are not indigenously produced, is subjected to high rate of customs duty. AIRIA has, therefore, sought waiver of customs duty on raw materials not manufactured domestically such as butyl rubber, SBR grade 1500/1700 and other hi-tech synthetic rubbers and polyester tyre cord.

The duty on latex continues to be 70% and has been only recently capped at Rs 49 per kg. However, for latex, being a wet form of natural rubber, the duties should be comparable with natural rubber only, it said. AIRIA also asked for raising the exemption limit of SSI rubber units to Rs 10 crore and for excluding the value of exempted goods from the turnover because of unusual price rise in natural and synthetic rubber -from Rs 125 per kg to Rs 250 per kg and $1.50 to $4.2 per kg, respectively over the last two years.

Source : timesofindia.indiatimes.com