The government is not looking at reducing import duty on rubber as of now, a senior official said on Monday, amid a certain section of the industry demanding a duty cut. This is because the government believes the differential between local and international prices has been maintained.
The government’s response comes in the backdrop of the demand for duty cuts from the user industry, such as tyre makers, while local producers oppose any reduction. Currently, the import tax on natural rubber is 25 per cent or Rs 30/kg, whichever is higher.
The official further said that the financial assistance for the rubber sector has been raised by 23 per cent to Rs 708.69 crore for FY25 and FY26.
During the previous financial year, consumption of rubber in India stood at 13.5 lakh tonns, while production was lesser at 8.39 lakh tonnes. As a result, India ends up importing natural rubber to meet local demand from neighbouring countries such as Vietnam and Indonesia.
