Tyre manufacturers request government intervention to cut losses

July 30th, 2010 - 3:37 pm ICT by ANI  

By Juhan Samuel

Kochi, July 30 (ANI): The tyre industry in Kerala has requested government intervention over the surging input cost of natural rubber and asks the government to intervene.

India’s top tyre firms have raised prices at least thrice this calendar year, but officials have said the increases were not sufficient to protect margins.

“We have a tremendous pressure on the cost, whereas, in the international market there is almost a difference of 25 rupees. If you have to import without duty, you will import at 25 rupees less, and today our prices are the highest in the natural rubber. We have requested to the government that they must consider. We would love to see that our brothers in the farming community must make money,” said Onkar S. Kanwar, Chairman of Apollo Tyres Ltd.

Prices of natural rubber that make up over 40 percent of a cost of a tyre, had hit a record high of Rs 18,400 per 100 Kg earlier this month, Rubber Board data showed.

The price has risen by about 32 percent since January.

The price hike is due to the rising demand of rubber in the automobile sector, and in international markets like China and are expected to rise further. (ANI)

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