MANGALURU: The steep decrease in the price of rubber worries planters in Karnataka.
In early 2011, rubber fetched Rs 245 per kg, but it is slipped to Rs 115 per kg in December 2014. This steep plunge in rubber price was because of the import of natural rubber by tyre manufacturing companies at the current low rate of import duty of 20%.
Rubber in the international market in Bangkok and Thailand is available at Rs 106 per kg, said members of All Karnataka Rubber Planters’ Association (KRUPA). The association has urged the Centre to intervene and prevent the drastic decrease in the price of natural rubber. Association president N Sharath Bhandary told STOI that they have submitted a memorandum to Union minister of state for commerce and industry Nirmala Sitharaman.
“KRUPA Mangaluru, represents all the rubber growers of Karnataka, which is one of the most potential rubber-yielding states, besides Kerala and Tamil Nadu. About 50,000 growers have already ventured into rubber cultivation with an extent of over 45,000 hectares. Karnataka may emerge as second largest state in the south, with regard to Rubber cultivation by 2020.
The current cost of production of one kg of natural rubber is about Rs l50. Therefore, the growers have already started to look for alternate crops, which may result in a sharp decline in domestic natural rubber production and India’s total dependency on imported rubber will obviously increase,” Bhandary said.
He said KRUPA has demanded that government increase the duty tax on imported natural rubber to at least 70% on par with latex rubber, which attracts an import duty of 70%.
“The government should recommend to the Association of Natural Rubber Producing Countries to influence the international market, to fix a higher remunerative price of about three dollars per kilogramme. Funds should be allotted to make disbursements to already pending plantation subsidies by the rubber board and also for continuation of financial support for rubber growers. We demand appointment of one rubber planter member from Karnataka in the reconstituted board. Further, a new regional office may be opened at Belthangady in DK district for catering to the needs of a large number of Rubber growers in the region,” he added.
Rubber growers have urged the central government to intervene and prevent the drastic decrease in rubber price.
– India Times
