Despite higher allocation, growers allege Budget neglected natural rubber sector
The Budget has given the Rubber Board reasons to cheer, thanks to increased allocations, while growers were totally dissatisfied about there not being a mention of minimum support price (MSP) for the commodity.
According to officials, the Board has received a higher allocation of ₹360.31 crore compared to the revised estimate of ₹348.38 crore in the Budget in the current fiscal. The funds are expected to be utilised for various initiatives such as rain-guarding and planting, they said.
The higher allocation will give the Board flexibility to finance all grower support programmes outlined in the annual plan. The specifics of these initiatives will soon be shared with stakeholders. The Board will seek a revised Budget estimate later, depending on the progress of various schemes, the officials said.
Santosh Kumar, Whole Time Director and CEO, Harrisons Malayalam, said there was a need to provide higher budgetary allocation to strengthen the research capabilities because of climate change being witnessed to improve production and productivity. Natural rubber growers, who are alarmed at the large-scale inflow of compound rubber from ASEAN nations, were expecting an announcement in this regard. The growing community has also been demanding an MSP given the low prices of natural rubber compared to the cost of production.
No allocation for PSF
However, Babu Joseph, General Secretary, National Consortium of Regional Federations of Rubber Producers Societies India, said the Budget has ignored the MSP demand of small-scale growers. The federations have recently represented the Parliamentary Standing Committee to raise the import duty on compound rubber from ASEAN countries, aligning it with the duty on natural rubber. With major rubber-producing nations belonging to ASEAN, large volumes of natural rubber—often mixed with additives like carbon black to bypass higher import duties—continue to flood the Indian market.
The import of rubber disguised as compound rubber is expected to reach nearly two lakh tonnes this year, worsening the crisis for domestic growers, he said.
Kerala Congress factions, who have been supporting the cause of rubber growers, also voiced their concern over neglecting the farming community. The long-standing demand of the growers for ₹1,000 crore towards the price stabilisation fund (PSF) for the crop fund has been completely ignored, the party leaders said.
