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Regarding problems being faced by rubber growers in the
country due to import of compound rubber under the
India-ASEAN Free Trade Agreement-laid
SHRI ANTO ANTONY (PATHANAMTHITTA): As per existing
import policy, Natural Rubber attracts a 25% import duty. The
Hon?ble Finance Minister had also announced in the Union Budget
that compound rubber would be taxed at par with Natural Rubber,
as it essentially comprises NR mixed with additives and is often
imported under a different HSN Code (4005 instead of 4001) to
bypass regulations. However, compound rubber continues to enter
the country at 0?5% duty due to provisions under the India-ASEAN
Free Trade Agreement, particularly from countries such as
Thailand, Indonesia, Malaysia, and Singapore. One of the primary
reasons for this decline in NR prices is the excessive import of
rubber into the country. While Natural Rubber is a key input for the
tyre industry, major tyre manufacturers have been importing NR
not only to meet their requirements but also, allegedly, to influence
and suppress domestic raw material prices. An excessive import of
rubber during the period April?December 2025 is 360500 metric
tons taken place in the country. Therefore, I request the
Government to take urgent steps to restrict import of compound
rubber by misusing HSN code from ASEAN countries.