Indian tyre manufacturers have urged the Centre to permit temporary duty-free imports of natural rubber under a Tariff Rate Quota (TRQ), after domestic prices rose to Rs 300 per kg and supply fell short even during the peak tapping season.
The Automotive Tyre Manufacturers’ Association (ATMA) made the request in a statement to commerce and industry minister Piyush Goyal. It proposed that imports be allowed only to cover the gap between domestic demand and supply, and remain in place until market and supply conditions normalise.
ATMA said India produced 905,000 tonnes of natural rubber in FY26, compared with consumption of 1.427 million tonnes. The difference represents a shortfall of about 37%, according to the association. The supply deficit has emerged during the period when tyre manufacturers typically depend on peak tapping activity to secure rubber for production schedules.
Natural rubber prices have risen nearly 62% from the November 2025 average of Rs 186 per kg to Rs 300 per kg. ATMA said the increase in procurement costs was putting pressure on manufacturers attempting to maintain uninterrupted production.
“The proposed arrangement may remain in place until market and supply conditions normalise,” the association said in its statement. Arun Mammen, chairman of ATMA, said tyre manufacturers were facing inadequate supplies even during the peak tapping season.
“Tyre manufacturers rely on the peak tapping season to secure domestic rubber for their production schedules. This year, supplies are falling short even during these months, while procurement costs have risen sharply,” Mammen said. He added that a temporary duty-free quota limited to the assessed shortfall would help manufacturers maintain production while protecting domestic rubber growers.
The request comes as tyre makers also face higher costs for synthetic rubber, carbon black and other petroleum-based inputs. ATMA said the crisis in West Asia had pushed up international crude oil prices as well as freight and logistics costs, adding to the industry’s overall cost burden.
The association said India’s tyre industry has an annual turnover of about Rs 1 lakh crore and exports exceeding Rs 27,000 crore. Tyre exports increased 16% year-on-year in the first quarter of FY27, according to ATMA.
The proposed TRQ would link the volume of duty-free imports to the assessed domestic supply deficit rather than open-ended imports, as per the industry’s request. ATMA said access to natural rubber at competitive prices was critical for sustaining domestic manufacturing and ensuring uninterrupted production.
The request now awaits consideration by the commerce and industry ministry. ATMA’s proposed arrangement would continue until market and supply conditions return to normal, subject to the government’s decision on the quota and its terms.
