ATMA warns of natural rubber availability in India

New Delhi, India – India’s Automotive Tyre Manufacturers Association (ATMA) reports that June 2024 saw actual natural rubber availability at merely 30,000 tons, falling significantly short of the projected 60,000 tons.

The crisis deepened in July, with ATMA noting an almost complete halt in natural rubber sales for most of the month. This scarcity has had wide-ranging impacts across the rubber industry, affecting both small and medium enterprises as well as major tire manufacturers.

Rajiv Budhraja, Director General, ATMA, highlighted the severity of the situation, stating, “Some tire plants of ATMA member companies have witnessed production sliding over 10 per cent in July owing to the natural rubber crunch. Production planning is in total disarray.”

He further explained that the shortage has forced companies to redistribute imported natural rubber, which can only enter through two ports, among various plants to maintain operations.

The All India Rubber Industries Association (AIRIA), representing approximately 5,000 small and medium-scale rubber units, has also voiced concerns.

AIRIA President Shashi Kumar Singh emphasized the particular vulnerability of MSMEs, which lack the resources to maintain large inventories.

Adding to the complexity of the situation, industry stakeholders have questioned the accuracy of natural rubber stock figures provided by the Rubber Board, suggesting a discrepancy between reported figures and ground realities.

Singh noted that despite domestic natural rubber prices reaching a 13-year high, which should theoretically stimulate market supply, the shortage persists.

The crisis has prompted calls for a reassessment of the stock position by the Rubber Board. Additionally, smaller rubber sector entities are grappling with the dual challenges of domestic shortages and high import duties on natural rubber