Need to accelerate domestic Natural Rubber manufacturing: Arun Mammen, Chairman, ATMA

India’s Natural rubber (NR) consumption is projected to attain 20 lakh tonnes by 2030 and there’s a want to accelerate domestic manufacturing, Arun Mammen, Chairman Automotive Tyre Manufacturers Association (ATMA), stated.

“In FY25, domestic NR production stood at 8.7 lakh tonnes, while consumption was 14.1 lakh tonnes, resulting in a deficit of over 5 lakh tonnes,” he stated in an interview.

“This underscores the need for sustained long-term investments in plantation development, tapping, and productivity enhancement,” Mr. Mammen stated.

Accelerating domestic pure rubber (NR) manufacturing is a nationwide precedence, given the strategic significance of NR to a number of sectors, particularly the tyre trade. Bringing extra space underneath rubber cultivation—particularly in non-traditional areas just like the North East—is essential. Several North Eastern state governments are proactively supporting this agenda, he stated.

Mr. Mammen identified in a first-of-its-kind public-private partnership, the INROAD (Indian Natural Rubber Operations for Assisted Development) venture was launched by ATMA member firms (Apollo, CEAT, JK Tyre, and MRF) in collaboration with the Rubber Board of India.

The venture goals to develop two lakh hectares of latest rubber plantations throughout the North East and West Bengal. Over 1.25 lakh hectares have been introduced underneath cultivation within the first 4 years. ATMA member firms have dedicated ₹1,100 crore to the venture, he stated.

A major alternative lies in bettering manufacturing by tapping almost 2 lakh hectares of untapped rubber plantations, together with 1 lakh hectares in Kerala alone. Union Commerce & Industry Minister has not too long ago emphasised this chance throughout stakeholder consultations in Kerala, Mr. Mammen stated.

Rubber bushes take roughly six to seven years from plantation to tapping, Mr. Mammen stated.

He additionally identified inverted responsibility construction on NR is among the key challenges.

“While tyres can be imported at concessional or zero duty rates under various Free Trade Agreements (FTAs), natural rubber—our primary raw material—attracts a Basic Customs Duty (BCD) of 25% or ₹30/kg (whichever is lower). This is among the highest globally and severely impacts cost competitiveness, particularly when global rubber prices are low. Addressing inverted duty structure is essential to support domestic manufacturing and reduce reliance on imports of finished products,” he stated.

In the final three to 4 years alone, the trade has invested roughly ₹27,000 crore throughout greenfield and brownfield tasks. As per a PwC Vision Document, the trade is projected to develop at a CAGR of 11–12% until 2047, Mr. Mammen stated.