Kerala govt to procure rubber at Re 1/kg above market price

In a relief to rubber growers hit by steady fall in prices, the Kerala government will procure directly from growers paying Re 1 per kg above the open market price.
This was decided by a meeting of ministers concerned and officials of agencies involved convened by Chief Minister Oommen Chandy here last evening.
The support scheme will continue till the market price of RSS-Grade 4 rubber touches Rs 171 per kg, an official release said today.
The direct procurement would be carried out through co-operatives and its impact would be reviewed regularly by the government and apex agencies.
According to Rubber Board, the price of RSS-Grade 4 stood at Rs 144 per kg today.

The issue of steady crash in rubber price had figured in the State Assembly yesterday and both the ruling party and the opposition had voiced deep concern over the trend, which they attributed to the import of the raw material bowing to demand from the industry, mostly tyre manufacturers.
The matter was raised by the LDF, and Chandy assured the House that the direct procurement mechanism would be put in place immediately.
The government also wanted the Centre to consult Kerala, which accounts for nearly 90 per cent of rubber production, before deciding on the quantum and season of import.