
Severe Natural Rubber Shortage Threatens India's Tyre Manufacturing Sector
The Automotive Tyre Manufacturers Association (ATMA) reports that June 2024 saw actual natural rubber availability at merely 30,000 tonnes, falling significantly short of the projected 60,000 tonnes.
The crisis deepened in July, with ATMA noting an almost complete halt in natural rubber sales for most of the month. This scarcity has had wide-ranging impacts across the rubber industry, affecting both small and medium enterprises as well as major tyre manufacturers.
Rajiv Budhraja, Director General, ATMA, highlighted the severity of the situation, stating, "Some tyre plants of ATMA member companies have witnessed production sliding over 10 per cent in July owing to the natural rubber crunch. Production planning is in total disarray."
He further explained that the shortage has forced companies to redistribute imported natural rubber, which can only enter through two ports, among various plants to maintain operations.
The All India Rubber Industries Association (AIRIA), representing approximately 5,000 small and medium-scale rubber units, has also voiced concerns.
AIRIA President Shashi Kumar Singh emphasised the particular vulnerability of MSMEs, which lack the resources to maintain large inventories.
Adding to the complexity of the situation, industry stakeholders have questioned the accuracy of natural rubber stock figures provided by the Rubber Board, suggesting a discrepancy between reported figures and ground realities.
Singh noted that despite domestic natural rubber prices reaching a 13-year high, which should theoretically stimulate market supply, the shortage persists.
The crisis has prompted calls for a reassessment of the stock position by the Rubber Board. Additionally, smaller rubber sector entities are grappling with the dual challenges of domestic shortages and high import duties on natural rubber.
As the situation unfolds, the Indian rubber and tyre industries face an uncertain future, with potential implications for the broader automotive sector and related industries.
(KNN Bureau)
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research

- Tommaso Caratelli Introduces Zerix, Focusing On Innovative Risk Strategies
- Venom Foundation Achieves 150K TPS In Closed-Network Stress Test, Paving The Way For 2025 Mainnet Upgrade
- Imrat Group And Bybit Launch Innovative Investment Product Set To Disrupt The Global Crypto Market
- B2broker Receives“Best Liquidity Provider” Award At Forex Traders Summit Dubai 2025
- Bingx AI Evolution Begins: A $300M Vision To Build The Future Of AI-Powered Crypto
- Thinkmarkets To Launch Traders' Gym On Its Mobile App
Comments
No comment