<h1>Natural Rubber Demand Surges in 2016-17, Tyre Industry Seeks Duty Revision Amid Growing Demand-Supply Gap.</h1> Consumption of natural rubber in the country increased from 994,415 tonnes in 2015-16 to 1,044,075 tonnes in 2016-17, driven by demand in the auto tyre sector. The auto tyre sector saw a 6.6% growth, while the non-tyre sector grew by 1.8%. Production in 2016-17 was 691,000 tonnes, leading to a demand-supply gap. The tyre industry requested a revision of the duty structure, as the customs duty on tyres is 10% compared to 25% or Rs. 30/kg on natural rubber, but the proposal was not accepted. The government is promoting natural rubber production through a development scheme, while synthetic rubber remains deregulated.