A meeting on the ongoing West Asia crisis and its impact on the Indian rubber industry was held at Vanijya Bhawan, New Delhi, under the chairpersonship of Ms. Urmila, Economic Advisor, DPIIT, on 28th April 2026. The meeting was attended by representatives from ATMA and AIRIA, including Mr. Anay Gupta, President, Mr. Ashwani Sarin, Convener, Raw Material Committee, and Mr. V. T. Chandrasekharan, Member, Raw Material Committee.
The stakeholders discussed the severe challenges being faced by the non-tyre rubber sector due to disruptions in global crude oil supply chains. Key raw materials such as Synthetic Rubber, NBR, EPDM, Carbon Black, Silicone Rubber, Processing Oils and various specialty chemicals, which are largely crude oil derivatives, have witnessed unprecedented price increases.
Industry representatives informed DPIIT that crude oil prices have increased from approximately USD 80 per barrel in mid-February 2026 to around USD 106 per barrel currently, reflecting a rise of nearly 32%. Consequently, prices of several petroleum-linked raw materials have escalated sharply in the range of 30% to 80%, severely affecting manufacturing operations. The industry also highlighted concerns regarding frequent and abrupt price revisions by domestic raw material manufacturers without adequate prior notice. It was pointed out that the tyre sector is being given priority in raw material allocation due to its higher consumption, resulting in delays in supply to the non-tyre sector.
The Association requested the Government to declare Force Majeure in view of the current extraordinary situation and further sought financial assistance and support measures for MSMEs to help sustain operations during this challenging period. The members also requested waiver of Anti-Dumping Duties (ADD) imposed on e-SBR and rubber chemicals used by the rubber sector. Further, they urged that no new ADD notifications be issued on raw materials that have either been recommended by DGTR or are presently under investigation.
The Committee expressed its appreciation to DPIIT and the Government of India for granting Customs Duty exemption on select chemicals and solvents, including Polybutadiene, Styrene Butadiene Rubber and resins, effective from 2nd April 2026 to 30th June 2026 vide Customs Notification No. 12/2026 dated 1st April 2026. The industry also welcomed the announcement relating to Force Majeure provisions and the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. The representatives expressed hope for favorable consideration of the additional relief measures requested during the meeting.