Since the Budget 2015-16 did not address any of its grievances, the rubber sector is now reeling under a price crash that has made survival for small plantations difficult. The finished rubber products segment, including tyre companies, was expecting a few duty reliefs to face the increasing threat of importing products, especially from China. Natural rubber producers were looking for a hike in the import duty, from the present 20 per cent, in the Budget. Last year, natural rubber imports touched a high of 3,25,190 tonne and this year, till the end of January, the imports have shown a 14 per cent increase and is likely to touch 400,000 tonne by the year-end.

Though the tyre industry is happy at the measures to expand roads, its demand for increasing import duty on tyres has not been considered. The sector had argued against demand of rubber producers to increase duty on rubber saying it should be brought down further to help the industry.