Indian government cuts import duty on rubber to 7.5%
The Indian government has reduced the import duty on natural rubber to 7.5% from 20%, reports the Economic Times. The duty cut will be implemented for shipments up to 40,000 tonnes till 31 March 2011, to boost domestic supply and put a check on rocketing rubber prices that touched record INR207 (US$4.5, 27 December 2010) per kg. It has also been reported that the natural rubber import beyond 31 March 2010 will attract a duty of 20% or INR20 (US$0.4) per kg, whichever is lower. “The government has addressed the long-standing request of the industry. This should have happened long back when prices in domestic market were higher than international market,” said Rajiv Budhraja, director general of New-Delhi (India)-based Automotive Tyre Manufacturers’ Association. The Indian tire industry had been seeking a cut in the 20% customs duty on natural rubber, which is double that for tire imports. Looking at the price position, rubber and availability of rubber and the increased demand for