KOCHI: The Rubber Board will focus its promotion activities on consumption by the non-tyre sectors as offtake has dropped over 5% in the last six months.
Usually, this sector absorbs almost a third of production. Lacking the financial strength of tyre companies, the 4,000-plus units in the non-tyre sector are vulnerable to the changes in rubber prices and duties.
The sector was hit by a sharp rise in rubber prices and a low import duty on finished products last year. The downturn in the rubber prices towards the end of the year has brought some relief for the sector, which comprises many small-scale units.
As part of efforts to promote the sector, Rubber Board is taking an initiative to set up a product testing laboratory in Chennai. Rubber Board is hoping to get funds for the laboratory next fiscal.
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