Onmanorama/File photoKottayam: When almost all the sectors are hoping for increased allocation of funds in Union Budget, to be presented by finance minister Arun Jaitley Wednesday, rubber traders and farmers see nothing coming their way.
There are two reasons for that. One, the rubber industry here is largely dependent on the international market.
"Thanks to the rise in global crude oil prices, the value of natural rubber has gone over Rs 150 per kg for first-grade RSS-4 sheets in Kottayam market. The industry is run on global trends and due to this, the Budget will not affect the industry," Tomy Abraham, president of the Indian Rubber Dealers Federation, told Onmanorama.
However, Rs 150-plus is not the best rate rubber industry witnessed in Kerala. In 2011, farmers got over Rs 240 for a kg rubber, but it took a dip and went as low as Rs 90 in 2016 beginning. Then came the recovery, in a relief to the industry. With the safe zone the rubber price is in, it is less likely that the Center will offer anything for the industry.
Onmanorama/File photoReason number 2 is that the top rubber traders have had enough with the BJP government in the Center delaying its promised National Rubber Policy.
“I would be surprised if the government announces the National Rubber Policy in this Budget. The BJP government had promised the policy when they came into power. But it was evident from our talks with Union industry minister Nirmala Sitharaman that it won't be implemented in the near future,” Pious Kariya, one of Kerala's leading rubber traders, told Onmanorama.
Tomy Abraham echoed Kariya's sentiments. “During our meet in Delhi, it was evident that the minister wanted to end the discussion at the earliest,” Abraham said.
Reuters/File photoHowever, Kariya, who has decades of experience in the industry, listed out measures that would benefit the industry and farmers.
» Hike in planting and replanting subsidy; it is now at Rs 25,000 per hectare. Rubber board had proposed a hike to Rs 77,000 per hectare.
» A proper crop insurance scheme: Implementation of this will help farmers in case of crop loss due to natural calamities and even when they lose out on tapping days on a monthly basis.
» Impose cess on synthetic rubber, manufactured and marketed by big shots like Reliance and Tata
» Promote construction of rubberized roads. Even though the amount of rubber used in the mix is very less, a large-scale construction will increase the demand.
