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Kerala planters have raised concerns over the Rubber Board's decision to encourage block rubber production in India, saying it would hurbe t the interests of domestic farmers.
C Vinayaraghvan, chairman, Association of Planters of Kerala, said that farmers currently receive more than 90% of the price as their farm gate price. However, the proposed shift in processing would fetch a lower price compared to sheet rubber and would make them dependent on block rubber processing factories.
He noted that ribbed smoked sheet (RSS)-grade rubber could be produced in the backyards of farmers and that they could hold the stock till the prices were at an acceptable level.
“This initiative by the rubber board will only deprive the farmer of the price leveraging freedom he has enjoyed so far,” said Vinayaraghvan.
He added that this initiative would only help the rubber-consuming industry. Also, block rubber production is high in power consumption and the cost of effluent treatment is also higher.
The Association feels that all such costs would be reduced from the Indian Standard Natural Rubber (ISNR) prices and the balance would be transferred to the farmer.
Block rubber manufactured from latex is generally graded as ISNR-5, which is equivalent to the RSS-1 grade of sheet rubber.
"If we compare the technical specifications of sheet rubber and block rubber, the former is always better in all quality parameters. That is the main reason for the better price realised by sheet rubber, both internationally and domestically, compared to block rubber," said Vinayaraghvan.
According to the Association, sheet rubber price is about Rs 15 more than that of block rubber in the international market.
On August 25, 2016, the Bangkok price of RSS-3 was Rs 107.72 per kg, as against Rs 84.99 for SMR-20. In India, RSS-4 price was Rs 131, against Rs 107 for ISNR-20, as per the Rubber Board’s report.
“Hence it can be deduced that this effort of the Board is only to support the large consuming industry to get high quality rubber domestically at the cost of farmers, who are already reeling under financial penury due to low prices and high cost of production,” said Vinayaraghvan.
He urged the Rubber Board and the Centre to stop such anti-farmer initiatives immediately.
