News ID : 4032
Publish Date : 02 June 2020 - 09:13
After several months of not allocating currency to various industries, including tires, the central bank announced the priorities of Group One subject to government currency, excluding all industries, including tires and drugs, from the inclusion of receiving government currency accordingly, export currency would be the new pricing method of tire industry.
Khodrocar - Recently, the Ministry of Industry, Mines and Trade announced in a letter to the Chairman of the Board of Directors of the Tire Industry Association that tires and rubber raw materials have been transferred from Group One to Group II, and accordingly, the currency allocated to this group has been halved.

According to industry activists, the price of tires in their new products has increased, while due to increased demand and shortage of raw materials, rubber production has been limited in recent times, and this reduction in production in the rubber market is easily palpable.

"With the elimination of government currency, the tire industry will certainly not have a problem with the production process, but the cost price will undoubtedly increase. From now on, the tire industry will continue to work with foreign exchange earned from exports, since the price of foreign exchange earned from exports is obtained in negotiations with exporters, so the increase in costs and, of course, the cost price has not been calculated yet.” Mostafa Tanha, speaker of tire industry association told khodrocar reporter.

"Since this trend is new for the tire industry, the process will definitely be determined after several repetitions of the transaction. Everything needs experience, and the same process as in other methods must be repeated for export currency.” He said.

"Due to the existing restrictions, not only the tire industry but also other industries such as medicine have become the second priority and in the current situation of the country, there is no other solution for the officials and although it is not easy for the tire industry, production should continue.” He added.

"The method of finding an exporter is a special method, and since tire manufacturers have not had the experience to do so, they prefer not to mention their strategies for providing foreign exchange in the current situation and given the sanctions issues. Now, with the official announcement that no government currency will be allocated to the industry, tire manufacturers will have to find an exporter to supply the currency needed to import their raw materials.” He said.

Despite the industry activists' claims that prices have risen, some see it as rational, as the tire industry has been a major source of government currency for intermediaries and brokers, and the people and producers have not benefited. .

Undoubtedly, with the allocation of Nimai currency or the currency resulting from the export of prices, it will not increase to the extent that it has risen in the past few months due to the presence of intermediary activists, because there is no incentive for brokers due to rising prices. On the other hand, the traction market will not increase prices further.
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