Rubber support price stretched to ₹250

Keeping its election promise, UDF govt’s budget raised the minimum support price for natural rubber from Rs 200 to Rs 250 per kg.For now, the hike is more symbolic than financial — market price for the commodity was trading at Rs 271 in Kottayam on Friday, down slightly from a high of Rs 277 earlier in the week.The scheme would be beneficial only when the support price exceeds market rate. Small-scale farmers, who are members, benefit by collecting bills from dealers and submitting them through rubber producer societies. But the scheme has long struggled with low takers — many producer societies exist only on paper and delays in disbursing payments have kept farmers away.This is not a new problem. The scheme, first introduced by 2011-16 UDF govt at Rs 150, was active for barely a year or two before market prices overtook it.

For several years, funds were allocated in budget but never spent, as market rates stayed at or above the support price.Prices have held in Rs 260-270 range for weeks now, partly because adverse weather has cut production and limited supply reaching the market. With production costs around Rs 200/kg, farmers pushed for a support price of Rs 250, though they note that costs have risen by another Rs 20 this season alone.

Pius Scaria Pottamkulam, a planter from Kanjirappally, welcomed raising rubber support price in UDF govt’s first budget itself. “Prices shot up in the local market because of Middle East crisis. Tyre manufacturers had to depend on the local market since imports weren’t possible,” he said. Local prices are likely to fall once shipments resume with the Middle East crisis ending, he added.Babu Joseph, general secretary of National Consortium of Rubber Producers’ Societies, congratulated chief minister V D Satheesan for delivering on UDF’s election promise. “The rise in both market and base prices bring new hope to Kerala’s rubber farmers. We hope the high-range economic sector, which faced repeated setbacks, will regain its strength,” he said.