The micro, small & medium enterprises (MSMEs) in Indian rubber industry are demanding immediate review of the anti-dumping duty, which was imposed five years ago, on carbon black, an important raw material for the rubber sector.
Raising concerns, All India Rubber Industries Association said that the MSMEs are facing trouble while accessing raw materials and are then compelled to buy it from black market at an additional premium.
According to Vikram Makar, Senior VP of All India Rubber Industries Association (AIRIA), they were impacted first by demonetization, followed by GST and then the anti-dumping duties imposed on their raw materials.
He said all these back to back events has had a compounding effect on the small players in the rubber industry and had put many units in the peril state.
To add to the woes, domestic natural rubber production has hit multi-year low causing a supply crunch in the domestic market. In such a scenario, small enterprises are forced to import and the anti-dumping duty is adding to their costs.
The non-tyre segment of the industry is the worst sufferer, he added.
Explaining the situation, Makar told the media that the supply crunch of domestic natural rubber in the Indian domestic market has added woes in the industry.
In such a situation, small enterprises are forced to import and the anti dumping duties are adding to their costs.
The anti-dumping duty for carbon black from China is $350 per tonne and $60 for carbon black import from Russia.
The AIRIA Vice president said that the duty was imposed five years ago when the scenario was different but needs to be reviewed as things have changed now.
