Tyre Industry Faces Severe Natural Rubber Shortage

Automotive Tyre Manufacturers' Association (ATMA) reports a severe shortage of domestic natural rubber, impacting tyre production. Despite high NR prices, availability is limited. ATMA urges the Rubber Board to monitor domestic sales to ensure supply, highlighting a growing reliance on imports due to unpredictable local stock.

The Automotive Tyre Manufacturers' Association (ATMA) has raised alarms over a 'severe crunch' in the availability of domestic natural rubber, which they fear could disrupt tyre production if the supply issue remains unresolved.

Despite natural rubber prices hitting a historic high, the availability has dwindled significantly. The ATMA suspects that certain entities within the natural rubber trade might be withholding stock, anticipating a further rise in prices, thus exacerbating the shortage.

Rajiv Budhraja, ATMA's Director General, stated that although the Rubber Board estimated a 3.7 lakh tonne stock at the fiscal year's start, this stock is not adequately visible to meet the current demand. Consequently, tyre companies, consuming over 70% of the country's natural rubber, might have to depend heavily on imports, creating another layer of unpredictability and potential delays in production processes.