On Thursday, the tire industry in India's southern Kerala State requested government intervention over the surging cost of natural rubber.
India's top tire firms have raised prices at least three times this calendar year, but officials say the increases are not sufficient to protect margins.
[Onkar S. Kanwar, Chairman, Apollo Tires Ltd.]:
"We have a tremendous pressure on the cost, whereas, in the international market there is almost a difference of almost 25 rupees ($0.53). If you have to import without duty, you will import at 25 rupees less, and today our prices are the highest in the natural rubber. We have requested to the government that they must consider. We would love to see that our brothers in the farming community must make money."
Prices of natural rubber that make up over 40% of a cost of a tire. They hit a record high of $396/100kg earlier this month.
The price has risen by about a third since January.
The price hike is due to the rising demand of rubber in the automobile sector. Demand in international markets like China and are expected to rise further.
