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The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd has urged the Karnataka government to announce minimum support price (MSP) for rubber growers in the state.
In a memorandum to the Karnataka government in this regard, A Kishore Kumar Kodgi, President of Campco Ltd, said the Rubber Board had fixed the production cost of rubber at ₹172/kg in 2016. He said now the production cost of rubber has gone up to ₹250/kg. Currently, the rubber prices are hovering around ₹160/kg.
On the prospects of rubber production, he said conditions are favourable for good rubber production in Kerala (which is a major producer of rubber in the country) this year. Citing experts, he said an increase in rubber production may lead to a decline in the price of the commodity.
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In such a situation, the Government should take immediate measures to announce MSP for rubber to help growers who are dependent on this commodity.
Stating that Campco has been encouraging farmers to take up rubber cultivation as part of the integrated farming practice, he said it also procures the commodity from its grower members.
Apprehensions
Farmers in coastal Karnataka and Malnad areas of the state have taken up rubber cultivation along with areca nut farming. However, the fall in the prices of rubber has created apprehensions among many about the future prospects of the commodity, he said.
Referring to the duty structure on imported rubber, he said natural rubber attracts a customs duty of 25 per cent and compound rubber attracts a customs duty of 10 per cent. He alleged that the natural rubber is being imported as compound rubber by some people by paying a customs duty of 10 per cent. This has affected the rubber growers as the market price of the commodity is less than the production cost.
He urged the Karnataka government to approach the Central government to impose a uniform customs duty on both natural rubber and compound rubber.
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