The Automotive Tyre Manufacturers’ Association (ATMA) has asked Commerce and Industry Minister Piyush Goyal to allow temporary duty-free natural rubber imports under a Tariff Rate Quota (TRQ), as domestic prices have reached Rs 300 per kg. The request was reported by PSU Watch on 6 November 2026.
ATMA says the quota should be limited to the assessed gap between domestic demand and supply and should last only until market conditions normalise. The association says domestic supply is about 37% short of requirement.
Why Are Tyre Makers Asking for Duty-Free Natural Rubber?
Natural rubber prices are up nearly 62% from the November 2025 average of Rs 186 per kg. In FY26, India produced 9.05 lakh tonnes of natural rubber against consumption of 14.27 lakh tonnes, a gap of 5.22 lakh tonnes.
Imports currently attract Basic Customs Duty (BCD) of 25% or Rs 30 per kg, whichever is lower. ATMA Chairman Arun Mammen said: “Tyre manufacturers rely on the peak tapping season to secure domestic rubber for their production schedules.” On the proposal itself, he said: “A temporary duty-free quota, limited to the assessed shortfall, would help manufacturers maintain production”.
What Does This Mean for the Rubber and Tyre Industry?
Natural rubber is not the only input under pressure. According to the report, synthetic rubber, carbon black and other petroleum-based inputs have also become costlier, which ATMA links to the West Asia crisis that has raised crude oil, freight and logistics costs.
The stakes are large. India’s tyre industry has an annual turnover of about Rs 1 lakh crore and exports above Rs 27,000 crore, and tyre exports grew 16% year-on-year in Q1 FY27. Finished tyres attract a 10% import duty, rising to 15% for certain categories, including truck and bus radial and passenger car radial tyres.
Market Reaction and Industry Response
The source report does not mention any government response to the request, and no comment from rubber growers’ bodies was found in the material reviewed. ATMA’s own statement is the only industry position available at this time.
What Happens Next?
The request now sits with the Commerce and Industry Ministry. Any TRQ would need a government decision on the quantity and duration of duty-free imports. Tyre makers are watching the peak tapping season, which they rely on to secure domestic supply.
Frequently Asked Questions
What has ATMA asked for?
ATMA has asked for temporary duty-free natural rubber imports under a Tariff Rate Quota, limited to the gap between domestic demand and supply.
How high are natural rubber prices?
Prices have reached Rs 300 per kg, nearly 62% above the November 2025 average of Rs 186 per kg.
What is the current import duty on natural rubber?
Natural rubber imports attract Basic Customs Duty of 25% or Rs 30 per kg, whichever is lower.
Source: PSU Watch, 6 November 2026.
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