Tyre Industry alarmed over availability of natural Rubber

The Indian tyre industry has expressed serious concern over the extremely tight availability of natural rubber (NR) at a time of the year when supplies are normally expected to be at their peak. The current supply crunch has raised fears of disruption in tyre production if the trend continues. Prices of natural rubber have also been steadily rising and are now nearing ₹200 per kg.

According to the Automotive Tyre Manufacturers’ Association (ATMA), domestic availability of natural rubber has tightened significantly, even though this period traditionally coincides with the peak tapping season. Tyre manufacturing is a continuous process industry, and any prolonged disruption in raw material availability could severely impact production schedules and market supplies.

While a decline in rubber yield due to leaf fall disease and higher atmospheric temperatures in traditional rubber-growing regions is understood, ATMA has flagged concerns over possible hoarding by vested interests in anticipation of further price increases.

“The present tightness in natural rubber availability is a matter of serious concern for the tyre industry. This is the peak NR production season, and yet tyre manufacturers are struggling to secure adequate supplies to keep plants running smoothly. While some fall in output due to climatic factors is understandable, the magnitude of the current shortage points to deeper structural and market-related issues that need urgent attention” said Mr. Arun Mammen, Chairman, Automotive Tyre Manufacturers’ Association (ATMA).

In a communication to the Rubber Board, ATMA has also pointed out a serious mismatch between official production data and market realities. While Rubber Board figures indicate a 5% increase in NR production during April–November 2025, ATMA estimates suggest that production is actually about 8% lower during the said period. Similarly, the NR stock figures published by the Rubber Board do not align with ground-level availability. ATMA has therefore urged the Rubber Board to undertake a reality check through an independent assessment.

The tyre industry has made substantial investments in recent years to cater to rising demand from both OEM and replacement markets. However, raw material constraints now threaten to derail this growth momentum.

As per Rubber Board estimates, nearly 2 lakh hectares of rubber plantations remain untapped. ATMA has stressed the urgent need to identify these estates and bring them under tapping to augment the domestic supply. Currently, domestic production meets only about 60% of India’s natural rubber requirement.

In view of the emerging crisis, ATMA has reiterated its long-standing request for allowing duty-free imports of natural rubber to the extent of the domestic shortfall. It has also sought the removal of restrictions limiting NR imports to only two ports, to ease logistics and ensure smoother supply to manufacturing units across the country.

ATMA has called for immediate intervention by the Rubber Board and the Government to stabilise supplies, curb speculative practices and safeguard the interests of both rubber growers and rubber-based industries.