Rubber product manufacturers increase prices

Rubber industries have increased the prices of products by 7% as production costs have spiralled because of the U.S.-Israel-Iran war.

According to the All India Rubber Industries Association president Anay Gupta, with the production cost increasing by 15% in the last three months, the rubber industries hiked the prices from May 1. If the raw material prices do not stabilise in two months, the industries will look at another hike in the second quarter.

Prices of natural rubber has increased by 40% and that of synthetic rubber by 70%. Rubber industries that make products for various sectors, including automobiles, pharma, sports, tyres, and so on, use a blend of synthetic and natural rubber for most of the products. The industry is facing an almost 15% shortage of synthetic rubber availability because of the war and production declined by 15% at the MSME units, he added.

“However, the demand is still high. We just want some stability in prices,” he said. The Association has appealed to the government to permit duty free import of natural rubber for six months as the import duty now is 25% or ₹30 a kg, whichever is higher.