Government Hikes Outlay For Rubber Sector, Growers To Get Rs 40,000 Per Hectare
The Union government said it has hiked financial assistance to rubber growers as it seeks to bolster domestic production and slash imports of the material used to make tyres and medical gloves.
The Union government said it has hiked financial assistance to rubber growers as it seeks to bolster domestic production and slash imports of the material used to make tyres and medical gloves.
The outlay for rubber growers would rise 23% to Rs 708.69 crore over the years ending March 2025 and 2026 under the ‘Sustainable & Inclusive Development of Natural Rubber Sector’ scheme.
This additional financial assistance would go towards planting rubber in traditional and non-traditional growing areas and enhancing the quality of homegrown natural rubber, according to the Ministry of Commerce. It will also help cover higher production costs and provide additional incentives to growers, according to a statement.
The revised scheme will increase the outlay and cover the entire value chain, beginning with planting, processing and the point of sale, according to Amardeep Singh Bhatia, additional secretary at the Department of Commerce.
"...a large part of this goes in the form of assistance to the growers for planting in new areas as well as replanting of old plantations,” Bhatia told the media on Monday. “Here, the assistance increased substantially from the earlier Rs 25,000/hectare to Rs 40,000/hectare to help cover the increased cost of production and provide incentives to the growers.”
Cultivation In New And Old Areas
Planting of rubber, Bhatia said, will be undertaken on 12,000 hectares in traditional growing areas like Kerala and Tamil Nadu over the next two years. Further, 3,752 hectares will be brought under rubber cultivation in non-traditional regions during the same period. Scheduled caste growers in non-traditional regions will receive planting assistance of Rs 2 lakh per hectare.
The scheme also covers the supply of planting materials by the rubber board worth Rs 50,000 per hectare, over and above the plantation being carried out under the INROAD project in the North Eastern states. INROAD, or the Indian Natural Rubber Organisation for Assisted Development project of the Rubber Board, aims to boost rubber cultivation across these states.
The 'Sustainable and Inclusive Development of Natural Rubber Sector' scheme is an ongoing initiative of the government aimed at improving the productivity of natural rubber.
The Rubber Board, which also addressed the media, said it aims to provide specific and practical support to Indian growers. This would be through subsidies for new plantations and replanting of senile plantations.
Among the other objectives of the increased outlay are:
Understand the quality of the planting material.
Promote rubber-producing societies.
Set up group processing centres.
Train tapping and processing of field latex.
Offer rain guarding.
Provide social welfare measures for workers, like insurance and accidental coverage.
The move is unlikely to have a visible impact in the two years it is implemented, according to the official, who said that the gestation period of the plant will necessitate a longer window to observe increased production and better price realisation.
"...the focus on improved quality should aid in better price realisation for rubber sheets," Bhatia said.
India's current domestic production of natural rubber is pegged at 8.39 lakh tonnes as of FY22–23, whereas domestic demand for the same period was estimated at 13.5 lakh tonnes.
Sawar Dhanania, chairman of the Rubber Board, said measures were also being taken to help growers with the lifecycle of the rubber tree after its prime, like directing older wood towards rubber plywood production.
Other Key Features
In addition, three nodal centres of the National Institute of Rubber Training (NIRT) have been proposed under the scheme—in Agartala, Guwahati and Nagaland—with an outlay of Rs 5.25 crore in the next two years to promote MSMEs in the North East by imparting training in product manufacturing and quality control.
“During 2024–25 and 2025–26, a total of 712 training programmes are planned across the country, which will benefit 10,700 individuals, including 3,800 persons in the NE region,” according to a statement.
The scheme also accounts for welfare measures to improve the quality of life of workers and to retain existing tappers and workers.
"Various measures like educational stipends, women empowerment schemes, assistance for house construction, group life insurance, cum terminal benefit, personal accident insurance schemes, and pension schemes have been provided for with an outlay of Rs 7.02 crore for the next two years," the statement said.
