The Indian Rubber Dealers Federation has urged farmers to focus more on sheet production rather than latex to realise better prices for natural rubber.

The reluctance towards sheet production will always cost them dearly from fetching better prices for natural rubber, George Valy, president and Biju P.Thomas, secretary of the Federation said. They pointed out that the availability of latex in huge quantities in the domestic market will definitely have an impact on natural rubber prices.

According to the Federation, the production and availability of natural rubber has declined in the recent period due to Covid and issues related with climate change. The drop in international prices of natural rubber also benefited imports. Besides, the expansion of natural rubber cultivation in the NE states and the availability of the raw materials in the market have put further pressure on domestic prices.

Federation’s requests

The rise in imports of rubber compounds also impacted the domestic market and the Federation requested the Government to hike its duty from the present 10 per cent.

It is also pointed out that two lakh hectares of plantations are lying idle and the commencement of farming activities in these areas would help to produce three lakh tonnes of natural rubber additionally.

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The Federation also asked the government to formulate a scheme for southern states to encourage rubber production and address the shortage of tappers in line with the pattern introduced in the NE states in association with tyre manufacturing companies.

It has also asked the State Government to compensate rubber farmers from price fall at the earliest by providing assistance from the Price Stabilization fund at a time when natural rubber prices are ruling below ₹170. The government could not disburse any amount from the fund in the last two years.

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