The government implemented the package with tax relief after talks with tyre manufactures to find a solution to the crisis faced by growers in view of sharp fall in prices.
It cannot accept the situation as it forgo a tax revenue of Rs 130 crore as part of the package, Chandy told reporters during his media briefing on Cabinet meeting.
He said middlemen gained in the package and so in its attempt to make sure that farmers of Kerala get the price fixed as per the package, government had decided to convene a meeting of rubber dealers in the state.
Chandy said there was no end to the anxiety of farmers as the price of rubber continued to fall.
The government had also expressed its anxiety and concern regarding the situation to the Parliamentary Committee that visited Kerala recently, he said.
It had asked the Centre to intervene in the issue at the earliest.