The Automotive Tyre Manufacturers' Association (ATMA) has urged the Indian government to impose strict regulations on the import of waste tyres, highlighting the country’s growing status as a "dumping ground" for scrap tyres.
In its pre-budget submission to the finance ministry, ATMA revealed that the import of waste/scrap tyres has surged over fivefold since the fiscal year 2020-21.
"Such indiscriminate import of waste/scrap tyres is not only an environmental and safety concern but also undermines the very purpose of Extended Producers Responsibility (EPR) Regulation on Waste Tyres, which has been in place since July 2022," ATMA stated.
Arnab Banerjee, Chairman of ATMA, emphasized the urgent need for policy measures to curb the import of these tyres. "The import of waste/scrap tyres into India needs to be restricted through policy measures and, if necessary, allowed only in multiple cut or shredded form," he said. Banerjee pointed out that India, as one of the leading tyre manufacturers globally, has an ample domestic End of Life Tyre (ELT) processing capacity, with annual tyre production surpassing 200 million units.
In the fiscal year 2023-24 alone, India imported nearly 1.4 million metric tonnes of waste tyres, ATMA reported. These tyres often find their way into the replacement market, posing significant safety risks, or are incinerated, contributing to environmental pollution.
ATMA also highlighted the issue of the inverted duty structure affecting the tyre industry. "While the basic customs duty on tyres is 10-15 percent, under Free Trade Agreements (FTAs), tyres are imported into the country at even lower preferential duties, whereas the basic customs duty on its principal raw material, natural rubber, is much higher at 25 percent or Rs 30/kg, whichever is lower," ATMA explained.
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