Rubber procurement to stay till prices reach Rs 171 per kg

Kerala ready to allocate more funds for open market intervention in rubber

The Kerala government today announced the open market procurement of rubber from the growers in the state would remain till prices reach Rs 171 per kg .

A high-level meeting chaired by chief minister Oommen Chandy decided to continue with the market intervention till the open market price of RSS-4 grade reaches Rs 171 per kg. The state procured rubber was priced Re 1 above the open market price.

Procurement will be through the Kerala State Co-operative Rubber Marketing Federation (Rubbermark), primary rubber co-operative societies and co-operative marketing societies.

Replying to an urgent motion in the state Assembly, moved by K Suresh Kurup, an Opposition member, raising the issue of the continuous fall in rubber prices, Chandy said the state government had sought central financial assistance for the market intervention operations besides requesting the Union Ministry of Commerce to procure rubber towards stabilising the prices. The ministry is seriously considering this, he added.

Chandy said the local rubber prices were witnessing a downward trend in line with the global markets. Yet, Kerala was getting higher price than the international markets, he added. Meanwhile, Kurup alleged import through the duty free channel and at lower duty had affected the local market badly.

Finance minister, KM Mani, said the government was much concerned about the pathetic condition in the rubber growing areas of the state. Around 92 per cent of the rubber production is being carried out in Kerala.

The government had set apart Rs 10 crore for the market intervention operations in the latest Budget and was ready to allocate more money for procurement, Mani said.

An action plan will be chalked out for this and the minister for co-operation would co-ordinate the market intervention initiatives.

Mani, a veteran leader of Kerala Congress, which has strong clout in the rubber growing areas, said his party was ready to go for a strike against the anti-farmer attitude of the Centre.