New Delhi: The Automobile Tire Manufacturers Association (ATMA) on Tuesday said there is a need to restrict the import of waste tires into India, claiming that the country is becoming a "dumping ground" for waste tyres.
Import of waste/scrap tires into India has increased more than five-fold since FY20-21, ATMA said in its pre-budget presentation to the Finance Ministry.
"This indiscriminate importation of waste tires is not only an environmental and safety concern, but also undermines the very purpose of the Extended Producer Responsibility Regulation (EPR) on waste tires, which has been in force since July 2022," he added.
Raising the concern, ATMA president Arnab Banerjee said, "Import of waste or waste tires into India should be restricted through policy measures and if necessary, allowed only in multi-cut or shredded form."
India has become one of the world's leading tire manufacturers, with domestic tire production exceeding 200 million a year. Consequently, there is sufficient domestic end-of-life tire (ELT) capacity available in the country, he added.
ATMA said India is on its way to becoming a "dumping ground" for scrap and waste tyres. In FY24 alone, nearly 14 lakh metric tonnes of waste tires were imported into the country. These tires are either resold in the spare parts market, leading to unsafe travel, or burned causing environmental degradation, he said.
Among its budgetary wish list, ATMA also sought duty-free imports of natural rubber (NR) to the extent of the gap between the country's domestic supply and demand.
"Almost 40 per cent of the tire industry's NR requirements are met by imports due to non-availability of domestically manufactured NR. The higher tariff rate on import of NR in India impacts the competitiveness of the industry," he said.
ATMA also noted the need to address on a priority basis the issue of the inverted service structure of tires vis-à-vis their key raw material, natural rubber.
"While the basic customs tariff on tires is 10 to 15 percent, according to the Free Trade Agreements (FTAs), tires are imported into the country with even lower tariffs (preferential duties), while the basic customs tariff on its main raw material, i.e. natural raw material rubber, is much higher (25 per cent or Rs 30/kg, whichever is lower)," he said.
Import of waste/scrap tires into India has increased more than five-fold since FY20-21, ATMA said in its pre-budget presentation to the Finance Ministry.
"This indiscriminate importation of waste tires is not only an environmental and safety concern, but also undermines the very purpose of the Extended Producer Responsibility Regulation (EPR) on waste tires, which has been in force since July 2022," he added.
Raising the concern, ATMA president Arnab Banerjee said, "Import of waste or waste tires into India should be restricted through policy measures and if necessary, allowed only in multi-cut or shredded form."
India has become one of the world's leading tire manufacturers, with domestic tire production exceeding 200 million a year. Consequently, there is sufficient domestic end-of-life tire (ELT) capacity available in the country, he added.
ATMA said India is on its way to becoming a "dumping ground" for scrap and waste tyres. In FY24 alone, nearly 14 lakh metric tonnes of waste tires were imported into the country. These tires are either resold in the spare parts market, leading to unsafe travel, or burned causing environmental degradation, he said.
Among its budgetary wish list, ATMA also sought duty-free imports of natural rubber (NR) to the extent of the gap between the country's domestic supply and demand.
"Almost 40 per cent of the tire industry's NR requirements are met by imports due to non-availability of domestically manufactured NR. The higher tariff rate on import of NR in India impacts the competitiveness of the industry," he said.
ATMA also noted the need to address on a priority basis the issue of the inverted service structure of tires vis-à-vis their key raw material, natural rubber.
"While the basic customs tariff on tires is 10 to 15 percent, according to the Free Trade Agreements (FTAs), tires are imported into the country with even lower tariffs (preferential duties), while the basic customs tariff on its main raw material, i.e. natural raw material rubber, is much higher (25 per cent or Rs 30/kg, whichever is lower)," he said.
