The Indian tyre industry has raised concerns over the tightening availability of natural rubber (NR) during what is typically the peak tapping season, warning that prolonged supply constraints could disrupt tyre production across the country.

The Automotive Tyre Manufacturers' Association (ATMA) said domestic supplies of natural rubber have become severely constrained, even as prices have climbed steadily and are now nearing Rs.200 per kg. Tyre manufacturing is a continuous process industry, and sustained shortages could impact production schedules and market availability, the industry body cautioned.

According to ATMA, the supply crunch is unusual for this time of the year, when natural rubber output is generally at its highest. While factors such as leaf fall disease and higher temperatures in rubber growing regions have affected yields, the association also pointed to possible hoarding by market participants anticipating 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 manufacturers are struggling to secure adequate supplies to keep plants running smoothly", said Arun Mammen, chairman, ATMA