The Rubber Board must shift its focus from providing investment subsidy for new/replanting trees to facilitating investment finance, say industry stakeholders.
Small holders (less than two hectares) may be granted an interest subsidy on the capital for the pre-tapping period (first seven years) and it can be paid directly to the financial institution concerned.
No investments shall go uninsured, according to consensus emerging from consultations to provide policy inputs for the National Rubber Policy 2014.
The event was organised by the National Research Programme on Plantation Development at the Centre of Development Studies here.
The Centre of Development Studies is a member of an expert committee appointed by the Ministry of Commerce for the formulation of the Rubber Policy.
To achieve growth, investment needs to be promoted in all segments of the sector, stakeholders felt. The current level of subsidy for new/replanting (about 10 per cent of cost till the tapping stage) paid ex post is highly inadequate.
Subsidy level
The subsidy component compared poorly with that prevailing in competing countries, depriving growers in India of a level-playing field.
This is also one of the reasons for the absence of timely replanting, which has in turn resulted in the aging of plantations and low productivity.
– The Hindu
