Kochi/Kottayam – In a major relief and hope for the rubber farmers and planters, the prices of natural rubber in the domestic market have crossed Rs 200 per kilogram after a long gap of 12 years, thus bringing hope for the rubber industry which has been struggling due to low prices due to imports and policy paralysis.
Thanks to the sharp drop in imports due to extreme weather conditions in rubber-producing countries and the increasing demand for Indian-made rubber in European countries due to which the prices touched the 200 mark.
The rubber prices touched Rs 203 per kilogram on June 8th and has remained constant, thus bringing cheers to the nearly 11 lakh farmers across the state. However, farmers are of the view that the price rise is not sufficient and needs to go further high as financial returns is low due to high labour costs and extreme weather conditions that has dwindled the rubber production.
“The rise in rubber prices is indeed a relief. But the question is how long it will persist and whether it is going to increase as promised by various political parties during the election campaigning. For the small-scale rubber planters to sustain, the prices need to stay at Rs 250 per kg, else it is difficult to manage as the labour cost has increased substantially in the past 10 years”, said Joy Mathew, a rubber planter in Kottayam and a leader of Kerala Congress.
The prices of Rubber had touched its highest point in 2011-12 period prior to the current situation where the price reached Rs 208.65 per kilogram. However, within three years it plummeted to Rs 113 per kg leading to major distress among the farmers and planters. Since then, the prices fluctuated between Rs 120 and Rs 150, an all-time low leading to many planters shifting away from rubber and opting for alternative plantation sectors including arecanut, cocoa, coconut, pineapple, ginger or planting teaks in large tracts of land.
ATMA with support of government targets 3.5 lakh tonnes in next five years
In order to cater to the growing demand for the automobile industry in the country, the Automative Tyre Manufacturers Association (ATMA) with the support of the central government is planning to promote rubber plantations across the North Eastern part of the country.
ATMA with the support of the various stakeholders are planning to extend rubber plantations in states like West Bengal, Mizoram and Nagaland with a total area spanning two lakh hectares of land in the next five years.
Currently, as per experts in the industry, the Tyre market is accounting for 1 lakh crore and in the next 10 years, it is expected to double with the export share set to increase substantially.
The five major rubber companies in the country are planning to invest Rs 1100 crores. If the project succeeds, there will be an extra annual production of 3.5 lakhs tonnes annually, said ATMA chairman Arnab Banerjee.
The 2023-24 annual exports estimates suggest that Rs 23, 073 crores worth rubber has been exported to various countries.
Thanks to the sharp drop in imports due to extreme weather conditions in rubber producing countries and the increasing demand for Indian-made rubber in European counties that the prices touched the 200 mark. Kerala States News India: Top News India, States News, States News Headlines, Online State News India, State Politics news
