Rubber growers in Karnataka seek support price, hike in import duty

Rubber growers in Karnataka have urged the Centre and State governments to help them tide over the crash in the price of the commodity.

In this regard, they have urged the Karnataka government to announce market support price for rubber on the lines of Kerala model, and to the Centre to increase the import duty on rubber from the existing 25 per cent to 70 per cent.

Shridhara Bhide, President of the Karnataka State Rubber Growers’ Welfare Forum, said that the price of natural rubber, which was around ₹240 a kg in 2011-12, has now come down below ₹100.

He said the Karnataka government should announce market support price of ₹150 for rubber on the lines of the ‘Rubber Production Incentive Scheme’ of the Kerala government.

Under this scheme, the Kerala government credits the difference between the market support price and the daily reference price approved by the Rubber Board to the bank account of the grower directly.

The tapped area eligible for financial assistance in the Kerala scheme is limited to two hectares of rubber per applicant, and the eligible financial assistance for each applicant is limited to 1,800 kg/ha per annum. The 2015-16 budget of the Kerala government had earmarked ₹300 crore for ‘Rubber Production Incentive Scheme’ he said.

Raju Shetty, General Secretary of the forum, said that around 60,000 growers in Dakshina Kannada, Udupi, Shimoga, Chikmagaluru, Uttara Kannada and Kodagu districts of Karnataka grow rubber on around 50,000 hectares of land.

The State contributes more than 5 per cent to the total rubber production in the country, he said.

Bhide said that almost 70 per cent of the rubber trade in Karnataka is being done by co-operative institutions paying the tax to the government. Inspite of this, the repeated demands of the growers have fallen on the deaf ears of the State government, he said.

Urging the Centre to ban the import of natural rubber, he said if that is not possible the Union Commerce Ministry should take steps to increase the import duty from the existing 25 per cent to 70 per cent.

Bhide also urged the Centre to reconstitute the Rubber Board with suitable representation for growers in Karnataka. It should come out with a rubber policy as early as possible, he said.

The growers will hold a protest march in front of the office of Deputy Commissioner of Dakshina Kannada district on January 18 urging the Centre and State governments to help them tackle the crisis.