Action must be taken against the big tyre companies: Com. Elamaram Kareem MP

Action must be taken against the big tyre companies that cheated farmers and consumers: Com. Elamaram Kareem MP

CPI(M) leader in the Rajya Sabha and CITU state general secretary Com. Elamaram Kareem MP demanded strong action against tyre companies, including MRF, that colluded to raise tyre prices. He raised the issue in the Rajya Sabha and made a submission as a special mention. The Competition Commission of India (CCI) had fined five major tyre companies in the country Rs 1,788 crore for colluding to raise tyre prices: Apollo Tyres Rs 425.53 crore, MRF Rs 622.09 crore, Ceat Rs 252.16 crore, JK Tyre Rs 309.95 crore and Birla Tyres Rs 178.33 crore. The CCI order makes clear the conspiracies and manipulation by four or five dominant companies in tyre manufacturing to fix the market price of tyres.

MRF is India's largest tyre manufacturer, and the other companies are also dominant forces in the sector. The CCI found that the companies colluded to raise the prices of the tyres they make by controlling the production and supply of cross-ply/bias tyres used in vehicles that run on rough roads. The Automotive Tyre Manufacturers Association (ATMA) collected data on each company's tyre production, domestic sales and exports and passed it to the tyre companies, which colluded on prices on the basis of this crucial information.

There is also an allegation that the tyre companies, with the help of leading private banks, grabbed agricultural loans that rubber farmers should have received at low interest rates. Stronger action is needed against the collusion of the big tyre companies, which cheat farmers and consumers alike. A big conspiracy lies behind this. In his submission, Com. Elamaram Kareem demanded a vigorous investigation into the matter and strict action against those responsible.