Chennai: Indian tyre manufacturers have urged the government to allow temporary duty-free imports of natural rubber as prices climb to Rs 300 per kg, with domestic supplies falling short even during the peak tapping season.




The Automotive Tyre Manufacturers’ Association (ATMA) has asked commerce and industry minister Piyush Goyal to allow imports under a Tariff Rate Quota (TRQ), limited to the shortfall between domestic demand and supply. “The proposed arrangement may remain in place until market and supply conditions normalise,” ATMA said in a statement.




Domestic natural rubber prices have reached Rs 300 per kg, nearly 62% higher than the November 2025 average of Rs 186 per kg. Inadequate supplies and sharply rising procurement costs are putting pressure on tyre manufacturers to maintain uninterrupted production.




India produced 905,000 tonnes of natural rubber in FY26, against consumption of 1.427 million tonnes, leaving a shortfall of about 37%, according to ATMA.




“Tyre manufacturers rely on the peak tapping season to secure domestic rubber for their production schedules. This year, supplies are falling short even during these months, while procurement costs have risen sharply. A temporary duty-free quota, limited to the assessed shortfall, would help manufacturers maintain production while protecting the interests of domestic rubber growers,” said Arun Mammen , chairman of ATMA.




The surge in natural rubber prices comes as tyre manufacturers face mounting cost pressures from higher prices of synthetic rubber, carbon black and other petroleum-based inputs. The crisis in West Asia has pushed up international crude oil prices and freight and logistics costs, further adding to the industry’s cost burden.




The industry has an annual turnover of about Rs 1 lakh crore and exports exceeding Rs 27,000 crore. Tyre exports rose 16% year-on-year in the first quarter of FY27.




ATMA said access to natural rubber at competitive prices was critical to sustaining domestic manufacturing and ensuring uninterrupted production.