ATMA Urges Govt To Limit Import Of Waste Tyres In Pre-Budget Proposal

ATMA's pre-budget submission to the finance ministry states that imports of waste/scrap tyres into India have surged more than fivefold since FY20-21

The Automotive Tyre Manufacturers' Association (ATMA) emphasised on Tuesday the necessity of curbing the import of waste tyres into India, citing concerns that the country is increasingly being used as a dumping ground for scrap tyres. 

ATMA's pre-budget submission to the finance ministry states that imports of waste/scrap tyres into India have surged more than fivefold since FY20-21. "Such indiscriminate import of waste/scrap tyres is not only an environmental and safety concern but also undermines the very purpose of Extended Producers Responsibility (EPR) Regulation on Waste Tyres, which is in place since July 2022," it said.

Expressing concern over the situation, ATMA Chairman Arnab Banerjee remarked, "The import of waste/scrap tyres into India needs to be restricted through policy measures and, if necessary, allowed only in multiple cut or shredded form."

India has positioned itself as a global leader in tyre manufacturing, producing over 200 million tyres annually domestically. Consequently, he noted that the country boasts ample capacity for End of Life Tyre (ELT) disposal.

ATMA warned that India is increasingly at risk of becoming a destination for waste and scrap tyres. In FY24 alone, the country imported nearly 1.4 million metric tonnes of waste tyres. The association highlighted that these tyres are either resold in the replacement market, compromising safety standards, or incinerated, leading to environmental degradation.

As part of its budgetary requests, ATMA also advocated for duty-free imports of natural rubber (NR), equivalent to the shortfall between domestic demand and supply in India. "Nearly 40 per cent of the tyre industry's NR requirement is met by imports on account of non-availability of domestically manufactured NR. The highest rate of duty on import of NR in India impacts the competitiveness of the industry," it said.

ATMA also emphasised the urgency of addressing the issue of inverted duty structure between tyres and their primary raw material, natural rubber.

"While basic customs duty on tyres is 10-15 per cent, under Free Trade Agreements (FTAs), tyres are imported into the country at even lower duties (preferential duties) while the basic customs duty on its principal raw material, i.e., natural rubber, is much higher (at 25 per cent or Rs 30/kg, whichever is lower)," ATMA added.