Kerala to procure rubber from farmers

In a bid to help growers in the wake of fall in price of natural rubber, the Kerala government has decided to procure the commodity from farmers by paying Rs two per kg above the price fixed by the Rubber Board on a daily basis.
Speaking to reporters after a Cabinet meeting, Chief Minister Oommen Chandy said procurement would start soon after completing the formalities and government would continue to procure till the market price reaches Rs 171 per kg, which is the average price of natural rubber in the last three years.
The government would review the procurement system once it crosses 10,000 tonnes.

The Kerala State Cooperative Rubber Marketing Federation, Kerala State Marketing Federation Ltd, Rubber Producers Company, were the agencies entrusted with the work of procurement.
Chandy said the state has asked the Centre to suspend for six months the importing of natural rubber under Advance licencing system.
The demand of rubber growers to reduce VAT rate on the commodity was under consideration of the state finance department, he added.
The state also wants the Centre to take immediate steps on the report of Rubber Board on futures trade. Kerala accounts for 90 per cent of the country's total rubber production.
CPI-M led LDF Opposition members had staged a walkout in the assembly earlier this week in protest against government's refusal to hold a discussion on the fall in price of natural rubber.