Tyre makers see severe crunch in domestic natural rubber availability: ATMA

Automotive Tyre Manufacturers' Association on Wednesday said its members are witnessing a 'severe crunch' in the availability of domestic natural rubber and it may disrupt production unless supply issues of the raw material are addressed.

Despite high prices of natural rubber (NR), its availability has shrunk, Automotive Tyre Manufacturers Association (ATMA) said, expressing apprehension that some "sections of natural rubber producing interests or trade are withholding the material in anticipation of an increase in the NR prices worsening the availability".

The "tyre industry has been experiencing tightness in domestic availability of natural rubber for some time. However currently a severe crunch is being witnessed despite the fact that NR prices have touched a multi-year high. The paucity of natural price needs to be addressed at the earliest so that tyre production processes are not disrupted," ATMA Director General Rajiv Budhraja said in a statement.

The Rubber Board had estimat