Govt hikes rubber sector support by 23% to ₹708 cr for next two years

The government has increased financial package for the rubber sector by 23% to ₹708.69 crore from ₹576.41 crore for the next two years to enhance natural rubber production and productivity as well as reduce import dependency in the years to come, a senior official said on Monday.

Under the scheme, the Rubber Board provides subsidies for new planting and replanting (of senile plantations) to growers.

According to commerce ministry additional secretary Amardeep Singh Bhatia, the funds will be used for supporting the plantation of rubber, generation of planting material, productivity enhancement, formation of rubber producers' societies, and rubber research and training.

“We are providing assistance for planting on 12,000 hectares in the traditional areas of Kerala, Karnataka and Tamil Nadu,” Bhatia said, adding the financial aid is also meant for planting and replanting on 3,752 hectares in non-traditional areas like Andhra Pradesh, Odisha and north-east states. These areas will be brought under rubber cultivation during the next two fiscal years till 2025-26.

The assistance rate has been increased to ₹40,000 per hectare from the previous ₹25,000 per hectare, he said, adding that it will help cover the increased cost of production and provide additional incentive to growers. The government has also provided ₹29 crore for rubber research for the two years. The Rubber Board is the implementing agency of the scheme.

There are 1.3 million rubber growers in the country and Kerala accounts for a major chunk of the production, which was 5.99 lakh tonnes in 2022-23 followed by Tripura with 89,390 tonnes of natural rubber production. The production was almost half of the total domestic consumption during that fiscal. Consumption of natural rubber in the country was 1.35 million tonnes in 2022-23. 

India is largely dependent on imports from Vietnam, Malaysia, Indonesia, and other Southeast Asian nations. India also imports a huge chunk of natural rubber from Ivory Coast.

Under the scheme, planting materials worth ₹50,000 per hectare will be supplied to rubber growers by the Rubber Board. And this assistance will be in addition to the ongoing plantation being carried out in 2 lakh hectares under the Indian Natural Rubber Organisation for Assisted Development (INROAD) project in the Northeast. The scheme also entails planting assistance of ₹2 lakh/hectare for growers belonging to the scheduled caste category in non-traditional region.

The production of natural rubber would be increased through expanding planted area, accelerating rubber plantation development programmes in non-traditional regions, including the Northeast.