Domestic natural rubber shortages could impede tyre manufacture

New Delhi: The tyre industry is facing a significant crisis and could encounter plant stoppages and disruptions due to a shortage in the domestic availability of natural rubber, Automotive Tyre Manufacturers Association (ATMA), the industry body of Indian tyre makers, said on Wednesday.

In a communication to the Rubber Board, ATMA has requested urgent action to improve natural rubber availability to prevent disruptions. The tyre industry accounts for over 70% of the natural rubber consumed in the country.

“Tyre Industry has been experiencing tightness in domestic availability of natural rubber for some time. However currently a severe crunch is being witnessed despite the fact that natural rubber prices have touched multi-year highs. The paucity of natural rubber needs to be addressed at the earliest so that tyre production processes are not disrupted”, said Rajiv Budhraja, Director General, ATMA.

According to ATMA, the Rubber Board had estimated the total domestic natural rubber stock available in the country at the start of the current fiscal at 3.7 lakh tonnes.

Unfortunately, the visibility of such a high stock to support domestic demand is not there.

Notwithstanding the prices rising higher, the availability of natural rubber has dried thin. It is feared that a section of rubber-producing interests or trade is withholding the material in anticipation of an increase in the prices worsening the availability.

The growth in natural rubber consumption in the country continues to outpace production growth. India produced 850,000 tonnes of natural rubber during FY24, reflecting a 2% growth. In contrast, domestic consumption grew by 5%, surpassing 1.4 million tonnes during the year.