Tyre dealers to meet govt on arbitrary price hikes
New Delhi, Sep 17: All India Tyre Dealers' Federation (AITDF) will meet Union Industry Minister Kamal Nath tomorrow to discuss 'recent arbitrary and indiscriminate tyre price increases' by leading tyre majors.
The association will discuss the roll back of tyre prices to January 2006 level since the prices of natural rubber has dropped to Rs 80 per kg (January 2006 level) from peak price of Rs 115 per kg in May-June 2006 level and abolishing 16 per cent countervailing duty (CVD) on import of tyres and tubes.
Earlier, AITDF in its representations to the Ministry of Commerce and Industry had submitted details of tyre price increases by domestic tyre manufacturers.
In recent meetings with the senior officials the dealers had threadbare explained the need for roll back of recent price increases.
It alleged that the domestic tyre manufacturers, in union, have increased the tyre prices by 33 per cent to 42 per cent as against 50 per cent reduction in excise duty on tyres (32 per cent to 16 per cent) in two installments as on February 2003 and February 2005 in the Union Budget.