The Hindu Business Line : High prices lure more growers to plant rubber

THE current record-high price is surely inducing more growers to get into natural rubber plantations. The Rubber Board estimates that at least 4,500-5,000 hectares of new plantations would have come up during the current financial year to take the country's total plantation area to 5.81 lakh hectares.

"The net increase this year would be 3,000 hectares. Last year we had 5.78 lakh hectares of plantations," a top official of the Rubber Board said.

He said replanting — replacing old, low-yielding trees with new plantlets — would have taken place in 5,500 hectares, while new planting is estimated to have taken place in 4,500 to 5,000 hectares.

"We are witnessing a great enthusiasm in many areas to plant rubber. Even in the Malabar region, rubber plantations are coming up in a big way," the official said. Malabar is not a traditional rubber growing area in Kerala, as compared to the central and southern parts of the State.

Natural rubber prices are currently ruling at all-time high levels. The standard ribbed smoked sheet (RSS) - 3 grade had crossed Rs 82 a kg this month, making rubber the most lucrative plantation crop in the country.

The official said in many areas, growers were prolonging replanting activities, as they want to make the most out of the present price boom.

However, it takes 6-7 years for the trees to mature before tapping can be started.

He said growers had also increased the frequency of tapping to alternate days from once in three days.

All this has led to the possibility of production exceeding the targeted 7.80 lakh tonnes for the fiscal 2005-06, he said.

During April 2005 to January 2006, rubber production has grown by 4.5 per cent to 7,00,220 tonnes, up from 6,69,910 tonnes in the same period a year ago. "Even if we go by the conservative production forecast for February and March, we will surpass the targeted production," he said.

In the first half of the fiscal, natural rubber production grew by a marginal two per cent year-on-year, leading to scepticism among the trade that rubber production in 2005-06 may not reach the projected levels.

However, production picked up afterwards, buoyed by rising prices and conducive weather in Kerala, which accounts for over 90 per cent of India's natural rubber production.

The Rubber Board has forecast that production in February would be about 41,000 tonnes, and 42,000 months in March. Both the months are lean production periods as rubber trees start shedding leaves in this season.

Consumption during April 2005 to January 2006 stood at 6.64 lakh tonnes, recording a six per cent jump over the corresponding period last year. Exports went up to 55,105 tonnes (41,561 tonnes), where imports came down to 41,547 tonnes (51,140 tonnes).