Kerala raises natural-rubber support price to Rs 250/kg in budget
Kerala's small and marginal rubber farmers have welcomed the state budget decision to raise the support price of natural rubber to Rs 250/kg from Rs 200/kg.
The increase comes under the Rubber Production Incentive Scheme.
The move was widely expected after the ruling UDF's election-manifesto promise.
The scheme was introduced to protect growers from falling rubber prices.
Former Rubber Board chairman PC Cyriac said the decision would significantly help small growers.
Small growers account for nearly 70% of Kerala's rubber-farming community.
The higher support price is expected to encourage more farmers to resume tapping and improve productivity.
Cyriac noted that the immediate impact may be limited because domestic natural-rubber prices are currently trading above Rs 250/kg.
Recent editions have highlighted record domestic rubber prices.
However, the support price becomes important if international and domestic prices decline.
It gives farmers a guaranteed floor and confidence to maintain production.
Indian Rubber Dealers Federation president George Valy said the move would encourage growers to bring untapped plantations back into production.
It could also support replanting of ageing rubber trees.
He estimated that 20-25% of plantations remain untapped.
Of these, 10-15% are senile trees that need replanting.
Rubber and tyre value-chain impact
For India's rubber and tyre value chain, the policy reinforces the supply-side revival of Kerala's plantation economy.
That matters as tyre makers navigate record input costs across natural rubber, synthetic rubber and carbon black.
The key monitorables are tapping-resumption rates through the monsoon, replanting uptake, and the stabilising role of the support-price floor if the current record price run reverses.
This is meaningful policy support for the plantation economy that anchors India's domestic natural-rubber supply.
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