The Rubber Board has found reasons to rejoice in the Budget due to increased allocations, although growers were disappointed by the absence of a mention of minimum support price (MSP) for the commodity.
In the current fiscal year, the Board has received a higher allocation of ₹360.31 crore compared to the revised estimate of ₹348.38 crore in the Budget. These funds are expected to be used for initiatives such as rain-guarding and planting. The increased allocation will provide the Board with the flexibility to finance all grower support programs outlined in the annual plan. The specifics of these initiatives will be shared with stakeholders soon, and a revised Budget estimate will be sought later based on the progress of the schemes.
Santosh Kumar, Whole Time Director and CEO of Harrisons Malayalam, highlighted the need for higher budgetary allocation to enhance research capabilities in response to climate change. Natural rubber growers have expressed concerns about the influx of compound rubber from ASEAN nations and were expecting some relief in the Budget. There has been a demand for MSP due to the low prices of natural rubber compared to production costs.
Babu Joseph, General Secretary of the National Consortium of Regional Federations of Rubber Producers Societies India, noted that the Budget ignored the MSP demand of small-scale growers. The import of compound rubber disguised as natural rubber from ASEAN countries continues to flood the Indian market, aggravating the crisis for domestic growers.
The Kerala Congress factions, advocates for rubber growers, also criticized the neglect of the farming community in the Budget. The longstanding demand for ₹1,000 crore towards the Price Stabilization Fund (PSF) for rubber has been overlooked.
Despite the higher allocation for the Rubber Board, growers feel that the Budget neglected their sector by failing to address key issues such as MSP and the influx of compound rubber imports from ASEAN countries. The concerns of the farming community remain unaddressed, raising further challenges for the natural rubber industry.
Published on February 3, 2025.
