India to raise import tax on natural rubber by 5% from June 1

New Delhi: India will raise import tax on natural rubber by 5 percent to 25 percent from June 1, Finance Minister Arun Jaitley told lawmakers on Thursday.

The move is to ensure domestic supplies in the world`s second-biggest natural rubber consumers.

India, which buys most of its natural rubber from Thailand, Malaysia, Indonesia and Vietnam, is struggling to fulfill rising demand from tyre makers.

Production of natural rubber fell 15.4 percent in 2014/15 from a year ago.