Latest news with #StandardInput-OutputNorms
New Indian Express
07-05-2025
- Business
- New Indian Express
Union government to review tyre import norms as rubber prices fluctuate
KOTTAYAM: Amid fluctuating prices impacting the rubber plantation sector, the Union Government is taking decisive steps to address the long pending concerns raised by farmers regarding the loopholes in the import rules of rubber. Aiming to tighten regulations and prevent illegal import of rubber, the Directorate General of Foreign Trade (DGFT) under the Union Ministry of Commerce and Industry has taken steps for a comprehensive review of the Standard Input Output Norms (SION) rates for tyre products. According to reports, the DGFT has issued a trade notice announcing a comprehensive review of the SION applicable to automobile tyres. Earlier, the National Consortium of Rubber Producers' Societies (NCRPS), a collective of rubber farmers, had raised concerns about undue tax-free import of natural rubber under the Advance Authorisation Scheme (Advance Licence) misusing the DGFT norms. 'As per the DGFT notification of 2010, a motor vehicle tyre weighing 100 kg, should contain 44 kg of natural rubber, 8.6 kg of synthetic rubber and 23 kg of carbon. However, advancement in the tyre manufacturing technology over the past 14 years have led to a decrease in the percentage of natural rubber to 18-28%, while the percentage of synthetic rubber has increased. Due to DFTO not renewing the notification of 2010 on time, the import of rubber is more than doubled by availing duty free benefit. This causes huge tax loss to the country and harm to farmers,' said Babu Joseph, NCRPS general secretary. Taking a serious note of their concerns over the tyre companies bending the rules under the pretext of Standard Input-Output Norms to suppress domestic prices, the Union Government is moving to update these decades-old norms. These norms, which specify how much raw material is needed to produce a finished export product, are crucial for companies availing of duty exemptions.
The Hindu
03-05-2025
- Business
- The Hindu
Centre moves to revise duty-free rubber import norms after fears raised by Kerala growers
Having battled unstable prices and unfair trade practices for decades, rubber growers in Kerala finally have something to cheer about with the Union government now moving in to address some of their key concerns. Taking a serious note of their concerns over tyre companies bending the rules under the pretext of Standard Input-Output Norms (SIONs) to suppress domestic prices, the government has kickstarted works to update these decades-old norms. These norms, which specify how much raw material is needed to produce a finished export product, are crucial for the tyre companies availing themselves of duty exemptions. Official sources say the Directorate General of Foreign Trade (DGFT) under the Union Ministry of Commerce and Industry has issued a Trade Notice announcing a comprehensive review of the SIONs applicable to automobile tyres. This follows mounting pressure from Kerala's rubber growers to curb illegal or excessive import of duty-free rubber. The DGFT has also sought data to verify claims that tyre manufacturers have drastically reduced the use of natural rubber in their production process. While the existing norms, set in the 1970s, allow for 44% natural rubber in tyre manufacturing, actual usage today has dropped to just 18-20%, allege the growers. 'This loophole is hurting us badly,' says Babu Joseph, general secretary of the National Consortium of Rubber Producers' Societies (NCRPS). 'Tyre companies are still allowed to import rubber based on the old norms, effectively letting them bring in nearly double the required quantity duty-free. Worse, only 50% of that rubber needs to be used for exports while the rest is sold in the domestic market, pushing down prices and draining foreign exchange.' According to him, the delay in renewing a critical notification has reportedly led to a surge in duty-free imports. In March this year, a delegation or rubber growers, including major planters in the State, met with Union Commerce Minister Piyush Goyal to voice their concerns. Based on a representation given by the delegation, the government has begun responding on various key demands , which also include evaluating the impact of importing rubber and latex compounds and extending replanting credit support of up to ₹6 lakh at nominal interest. Taking things forward, the Rubber Board has already convened a preliminary meeting of stakeholders in Kottayam.
