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.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)