Natural Rubber Production In India: Status, Government Initiatives and Financial Assistance

Context: 

Recently, the Union Government has increased the allocation of the ‘Sustainable & Inclusive Development of Natural Rubber Sector’ scheme for the next two financial years (2024-26) by 23% from Rs 576.41 crore to Rs 708.69 crore.

• This increased allocation comes out amid a shortfall in availability of natural rubber which has resulted in rising import of natural rubber from countries such as Vietnam, Malaysia and other Southeast Asian nations.

Natural Rubber Production In India: Current Status

• There are over 13 lakh rubber growers in the country with Kerala accounting for a major chunk of the production, which was 8.39 lakh tonnes in FY23. 
  • Consumption, however, during FY23 was 13.5 lakh tonnes.

Financial Assistance To Natural Rubber Producers

• Implementation: Through the Rubber Board.
• Vision: For supporting the plantation of rubber, generation of planting material, productivity enhancement, formation of rubber producers societies, and rubber research and training.
  • This will aim to develop rubber clones suitable for different agro-climatic regions of the country to expand rubber cultivation to new areas.
• Utilization of Allocation: 
  • Increase in Plantation Areas: In traditional areas, including Kerala, Karnataka and Tamil Nadu, rubber plantation will be undertaken on 12,000 hectares.
    • In non-traditional areas like Andhra Pradesh, Odisha and north-east states, 3,752 hectares will be brought under rubber cultivation during 2024-26. 
      • Planting assistance at Rs 2,00,000 per ha will be provided for SC growers in non-traditional regions.
    • In the North East (NE), planting materials worth Rs 50,000 per ha will be supplied for plantation under the INROAD project. 
  • Additional Incentives: The rate of assistance has been increased to Rs 40,000 per hectare from Rs 25,000 per hectare, which will help cover the increased cost of production and provide additional incentives to growers.
  • Rubber Producers Societies (RPS): Assistance will be provided for the formation of around 250 new RPS and the formation of another 1450 farmer clusters will be supported in non-traditional and NE regions. 
  • Group Processing Centres (GPC): To ensure the quality and standardisation of rubber sheets, the setting up of GPC is being promoted. The construction of 18 GPCs will be supported in the NE and Non-Traditional regions.
  • National Institute of Rubber Training (NIRT): The establishment of three nodal centres of NIRT in NE region Agartala, Guwahati and Nagaland have been proposed with an outlay of Rs 5.25 crore.
  • Others: Various measures like Educational Stipends, Women empowerment schemes, Assistance for House construction, Group Life Insurance cum Terminal Benefit, Personal Accident Insurance Scheme and pension scheme have been provided for with an outlay of Rs  7.02 crore for the next two years.
• No Impact on Import Duty: The government is not considering any cut in import duty on rubber as of now as the differential between the local and international prices is maintained.
• Significance: The welfare measures are implemented to improve the quality of life of workers, to retain the existing tappers/workers and to attract more tappers, particularly women.

News Source: The Indian Express