Rubber growers seeks Rs 1 lakh/hectare subsidy

The rubber industry has proposed a hefty increase in the subsidy on rubber production to Rs 1 lakh per hectare in the 12th Five-Year plan to boost output. 

"We have proposed to the government to provide a one-time subsidy of Rs 1 lakh per hectare to small farmers for a period of three years for planting rubber trees," Indian Rubber Dealers Federation President George Valy said. 

The government at present is providing a subsidy of Rs 19,500 per hectare on rubber cultivation in the traditional areas (Kerala and Kanyakumari in Tamil Nadu) and Rs 30,000 per hectare in non-traditional areas.

 

The proposal emerged during the recent consultative workshop on the rubber sector organised by the Commerce Ministry for taking the views of the domestic rubber industry for designing a rubber policy for the 12th Five-Year Plan (2012-17).   

The rubber producers said that a hefty subsidy would help increase rubber production in newer areas like the northeastern states.

"In the traditional areas, there is limited space and so we have to look at the non-traditional areas. North-East is a good choice, but there are still few issues that need to be addressed," Cochin Rubber Merchants Association Ex-President N Radhakrishnan said.

The old subsidy scheme needs more incentives so as to attract the farmers to look toward rubber as a plantation crop, Radhakrishnan added.

The rubber industry apprehends that the demand-supply gap of natural rubber is increasing and the government needs to take steps to check it. According to the industry, the gap could increase to 3-5 lakh tonne by 2020.

According to official data, the demand supply-gap in the 2010-11 fiscal was 87,255 tonne, compared to 99,165 tonne in the previous year.  

"In the past fiscal, the non-tyre segment (rubber industry) could not achieve the projected growth because of low availability of rubber and high prices," All-India Rubber Industry Association (AIRIA) President Vinod T Simon said.

Similarly, the tyre industry also faced problems due high rubber prices and less availability.  

"In the past fiscal, rubber prices have been rising both in the domestic and international markets due to low availability, which have led to rise in cost to the manufacturers," Automobile Tyre Manufacturers Association (ATMA) Secretary General Rajiv Budhraj said.