NEW DELHI: The commerce ministry of the Indian government has agreed to set up a core committee to formulate a national rubber policy, a source close to the matter told ETAuto. The move was revealed in collaboration with the Automotive Tire Manufacturers Association (ATMA) at a meeting with other industry representatives.

The policy is expected to build on the existing National Automotive Policy and envision a long-term roadmap and strategy for the Indian rubber industry.

ETAuto spoke to Rajani Ranjan Rashmi, Additional Secretary, Steering Committee on Farms and National Organic Products, but he declined to comment on the matter.

A senior ATMA official said, “This policy, once implemented, will benefit the entire value chain.”

As per the proposal, the core committee will comprise representatives of all stakeholders, including tire makers, rubber manufacturers and automakers.

Over the past few years, rubber consumption in India has exceeded production. According to the Rubber Board, the gap between domestic production and consumption widened to 133,400 tons between 2013 and 2014. The industry expects production to lag behind by about 100,000 tons this year. Tire manufacturing accounts for about 65% of total rubber production.