New Delhi, March 11 -- Indian tyre companies are staring at a potential dual cost pinch scenario that can dent their growth prospects. The cost of natural rubber has been rising over the last two months amid a global supply crunch. Extreme weather conditions in major Southeast Asian nations have disrupted natural rubber production.

From Rs.18,500 per 100 kilograms in January, natural rubber price has risen to Rs.21,600 in March so far.

Soaring crude oil prices would add to this pain. Since the Iran-US-Israel conflict broke out, Brent crude oil has increased by 17% to around $87 a barrel on fears of a supply shock.

Natural rubber accounts for 30% of the raw material mix for tyre makers, 70% is dominated by crude-linked derivatives synth...