JK Tyre stated that it may increase the prices of its tyres by around 3-4 per cent by the end of this month.

The tyre maker said that it took this decision on the back of high input costs.

Mr. A. S Mehta, company's marketing director, stated, "There is a strong possibility of raising the rates by 3-4 percent by the end of this month."

Mr. Mehta added that a further increase in tyre price during the remaining year is doubtful, if the costs of natural rubber prices remain stable.

"Natural rubber prices are hovering around Rs. 160 per kg and if it remains at this level, there will be no further price hike this year," Mr. Mehta added.

Moreover, the commerce bureau has rejected an appeal made by the tyre business to slash the import duty on rubber to around 7.5 per cent.

In March this year (2010), the industry, hit by a steep increase in the prices of natural rubber, had demanded the country's Prime Minister Manmohan Singh to permit 2,00,000 tonnes of duty-free import of rubbers and lessen the import duty to 7.5 per cent as against 20 per cent.