Consumption of Natural Rubber (NR) has  increased from 994,415 tonne in 2015-16 to 1044,075 tonne in 2016-17 mainly due to rise in the demand of auto tyre sector.  The details are as under:

Consumption of NR (Tonne)

	2015-16	2016-17 (Provisional)	Growth (%)
Auto Tyre Sector	663,495	707,335	6.6
Non-Tyre sector	330,920	336,740	1.8
Total	994,415	1044,075	5.0

Production of NR in the country in 2016-17 was 691,000 tonne (provisional) against the consumption of 1044075 tonne of NR in tyre and non-tyre sectors.

There have been demands from Tyre Manufacturing Industry to rectify the  duty structure as the Basic Customs Duty on Tyre is 10% as against that of Natural Rubber duty is 25% or ₹ 30/kg. whichever is lower. The matter was examined in the Department and in view of the prevailing situation of the rubber sector the proposal was not agreed to.

In order to increase production of Natural Rubber in the country the Government through the Rubber Board is implementing the scheme “Sustainable and Inclusive Development of Natural Rubber Sector” wherein support is provided for plantation development and extension, strengthening research, technology upgradation and market development, Human resource development etc. So far as artificial/synthetic rubber is concerned, Chemical & Petrochemical Industry is delicensed and decontrolled and Government acts as facilitator in this sector.

This information was given by the Commerce and Industry Minister Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

Basic Customs Duty disparity persists; duty structure unchanged while government funds domestic natural rubber production measures. Consumption of natural rubber rose in 2016-17, outpacing domestic production and creating a consumption-production gap. The Department declined industry requests to alter the duty regime, leaving the Basic Customs Duty on tyres unchanged relative to natural rubber duties. The Government supports increased domestic natural rubber production via the Rubber Board's 'Sustainable and Inclusive Development of Natural Rubber Sector' scheme for plantation, research, technology and market development, while synthetic rubber operates in a delicensed and decontrolled sector with the Government as facilitator.