The Automotive Tyre Manufacturers' Association (ATMA) has approached the Union Commerce and Industry Minister seeking temporary duty-free imports of natural rubber under a Tariff Rate Quota (TRQ) mechanism. The request comes amid a substantial domestic supply shortage and a sharp increase in natural rubber prices, which have reportedly reached approximately Rs.300 per kg.

According to ATMA, India's natural rubber production stood at 9.05 lakh tonnes in FY2025-26, against consumption of 14.27 lakh tonnes, resulting in a supply deficit of approximately 37%. Domestic prices have increased nearly 62% compared with the November 2025 average of Rs.186 per kg.

ATMA has proposed that duty-free imports should be restricted to the assessed domestic supply shortfall and remain in place until market conditions normalize. The existing basic customs duty on natural rubber is 25% or Rs.30 per kg, whichever is lower.