Government Increases Funding for Advancement of Natural Rubber Industry

The decision to bolster the allocation for the sustainable development of the natural rubber sector scheme over the next two fiscal years, spanning from 2024 to 2026, by a substantial 23%, marks a pivotal move by the central government. This augmentation amplifies the budget from Rs 576.41 crore to Rs 708.69 crore, reflecting a strategic response to the pressing challenges confronting the natural rubber industry in India. These challenges primarily stem from a notable shortfall in the availability of natural rubber, necessitating a surge in imports from countries like Vietnam, Malaysia, and other Southeast Asian nations.

Despite the formidable hurdles posed by this supply deficit, India maintains a robust presence in the natural rubber sector, boasting over 1.3 million rubber growers nationwide. Among these, the state of Kerala emerges as a central hub, contributing significantly to production. In the fiscal year 2022-23, Kerala alone accounted for a substantial share of the 8.39 lakh tonnes of natural rubber generated. However, the consumption scenario paints a different picture, with demand soaring to 13.5 lakh tonnes during the same period, highlighting the critical need for strategic interventions to bridge the demand-supply gap.

Against this backdrop, the augmented funds are strategically earmarked for a myriad of purposes aimed at fortifying the natural rubber sector comprehensively. These purposes encompass a diverse array of initiatives, ranging from bolstering rubber plantation efforts and facilitating the generation of planting material to enhancing productivity, fostering the formation of rubber producer societies, and catalyzing initiatives in rubber research and training. Specifically, in traditional rubber cultivation strongholds such as Kerala, Karnataka, and Tamil Nadu, plantation endeavors will be expanded to cover an extensive area spanning 12,000 hectares. This expansion initiative is poised to bolster production capacities and enhance the resilience of the sector against external disruptions.

Despite the daunting challenges posed by the persistent disparity between local and international rubber prices, the government has opted against revising import duties on rubber at present. Instead, attention has been redirected towards implementing measures aimed at strengthening domestic production capabilities and fostering self-sufficiency in rubber production.

Furthermore, as part of the strategic realignment, the rate of assistance provided to rubber growers has been revised upwards, climbing from Rs 25,000 per hectare to Rs 40,000 per hectare. This adjustment is strategically aimed at mitigating the escalated production costs faced by growers while also providing an added incentive to stimulate greater participation and investment in rubber cultivation activities. In regions less traditional for rubber cultivation, such as Andhra Pradesh, Odisha, and the northeastern states, a substantial landmass totaling 3,752 hectares has been earmarked for rubber cultivation during the 2024-26 period. This expansion initiative is poised to diversify the geographical footprint of rubber cultivation and unlock new growth opportunities for the sector.

The meticulous execution and oversight of the scheme rest with the Rubber Board, entrusted with the responsibility of driving the strategic agenda for the sustainable development of the natural rubber sector. A specified allocation of Rs 29 crore has been designated for the ensuing two years to fuel rubber research initiatives. These research endeavors are strategically directed towards developing rubber clones tailored to diverse agro-climatic regions across the country, with the ultimate objective of expanding rubber cultivation into new territories and bolstering the sector's resilience against external shocks.