Big increase in Indian rubber imports for tyres

The amount of rubber imported into India by tyre manufacturers could reach 60,000 tonnes this year; higher than the original projection of 45,000 tonnes and more than double last year’s 26,000 tonnes. The tyre firms are importing through what is known as “the advance licence route”, which allows them to import rubber duty-free against exports of tyres. The companies are also said to be given 150 days’ credit for buying on the international market, while no credit is offered on the domestic market and domestic purchases incur an additional levy of 16 per cent.