Leading Indian tyre manufacturers have confirmed that they are interested in investing money to produce natural rubber in Northeast India as the Indian Government imposed a 40 Percent import cap.
The decision was finalized after a prolonged request made by the tyre manufactures since the Central Government had issued a new trade regulation wherein, the manufacturers required license to import tyres. It had been imposed to regulate the rising shipments from China and Thailand and their intention was to increase the produce and sales of domestic rubber manufacturers.
According to the current rule, manufacturers and traders are allowed to import tyres but it cannot exceed 40 Tyre manufacturers which is why the tyre manufacturers have decided to invest around Rs 1,100 crore to produce high-yielding variety of natural rubber in the Northeast. With this, the burden of getting natural rubber for production purposes is said to reduce.
The commerce and industry minister Piyush Goyal, stated that the tyre manufacturers will invest around Rs. 1,100 crore for growing high-yielding varieties of natural rubber in the northeast. Against an average yield of 1,200 kg per hectare, the target is to raise it to around 1,500 kg a hectare. India is country with production and consumption of natural rubber standing at 712,000 million tonnes and 11,34,210 million tonnes respectively in 2019-20.
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"Around 70 per cent of natural rubber is consumed by the auto tyre sector in India. This would also contribute to socio-economic development of northeast, while improving the standard of living of the beneficiaries, the majority of whom hail from tribal and other resource-poor communities. The improvement in the quality of processed forms of natural rubber will help the farmers to get a better price for their produce as well," an officer told TOI
"We are analysing if the model can be replicated for some of the vegetables so that farmers' interest is protected during the upside as well as downside," stated an official.
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