Low rubber prices force demands for market support price

Mangalore Today News Network

Mangaluru, Jan 14, 2016 : The actual prices of rubber crashed from Rs. 247 a kilogram in 2011-12 to Rs. 97 in 2015-16. Distressed over the 155 per cent fall in the prices of natural rubber in the past five years, rubber growers have urged  Karnataka government to fix a minimum market support price for the produce on the lines of Kerala.

Addressing media on Jan 13, Wednesday Sridhar G Bhide, president, Karnataka State Rubber Belegarara Hitarakshana Vedike, said Kerala government in its 2015-16 budget reserved Rs. 300 crore under ‘rubber production incentive scheme’ to support rubber growers.

Under the scheme, the difference between the market support price fixed by Kerala government and the daily reference price (or daily market price) approved by the Rubber Board was credited to the bank account of the farmers directly. It was on the basis of purchase bills furnished by the Rubber Producers’ Societies and duly certified by the Field Officers of the Board.

Kerala fixed Rs. 150 per kg as market support price from July, 2015 and was releasing the incentive to farmers since then. For example,  Bhide said if Karnataka government fixed Rs. 150 as market support price per kg of rubber and if the market price stood at Rs. 100 a kg the government should credit the balance Rs. 50 per kg to the bank account of the farmer directly.

Protest to be held Jan 18 :  President, Karnataka State Rubber Belegarara Hitarakshana Vedike,Bhide said though the growers in the State approached the government with demand several times, it has fallen on the deaf ears. Now all the growers would stage a protest in front of the office of the Deputy Commissioner here on January 18 to press for their demand.

He said the Union government should try to ban the import of natural rubber in toto.  Or, it should raise the import duty on natural rubber from 25 per cent to 75 per cent.

The Union government should announce the national rubber policy at the earliest. The government should re-constitute the Rubber Board which is now headed by an in-charge chairperson. The post of Rubber Production Commissioner is vacant since two years. This has hit growers with the Board not having designated authorities to listen to their grievances.  N.S. Bhandary, president, Karnataka Rubber Planters’ Association was present.