Tyre companies ready to work with the Rubber Board to increase rubber production
NewDelhi,July12:Tyre companies are planning to work with the Rubber Board to increase rubber production and quality. This will be aided by the government’s Look East Policy, say industry representatives.
Both the partners have agreed to come out with a medium- and long-term plan and strategies to improve production and quality.
Speaking on the sidelines at the fifth edition of Tyreexpo India, Automotive Tyre Manufactures Association (ATMA) Chairman Satish Sharma said that tyre manufacturers and rubber producers held discussions on how to improve rubber production and improve the quality of their products.
ATMA, for its part, will define quality standards for the short term, for a period of 3-5 years, and for the long term, which is for up to 10 years. This will be conveyed to the Rubber Board, which, in turn, will work with rubber growers to meet demand.
A three-member group from ATMA is also visiting the North East to see the potential for increasing rubber production in the region and to evaluate the possibility of setting up a processing centre there.
In the past, there has always been a stand-off between tyre manufacturers and rubber producers when it comes to quality. While rubber producers have alleged that tyre manufacturers import rubber despite the commodity being produced in India, tyre manufacturers have said that the quality of rubber produced in India is not good and it impacts their production cycle and machinery.
According to Sharma, the gap between demand and production is around 30 per cent. This gap is expected to narrow due to the collective initiatives by all stakeholders, including the government, which wants to boost rubber production with its Look East Policy.
ATMA has also commissioned a study on how to boost exports from India. This comes at a time when cheap imports from China are impacting the tyre bus radial segment in India.
Sharma said that nearly 92 per cent of imports are coming from only one country.
“We welcome the competition but we need a level playing field,” said Sharma.