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The Kerala government has approached the Centre seeking Rs 500 crore for providing assistance under the price support subsidy scheme to the struggling natural rubber farmers in the state.
In this regard, state finance minister KM Mani, who met Union Finance Minister Arun Jaitley, has submitted a memorandum.
The state government plans to procure 50,000 tonnes of rubber at Rs 150 each kg under the scheme, for which, it had earmarked Rs 300 crore in the state Budget.
“Rubber farmers will be provided a subsidy, that is the difference of the daily price published by the Rubber Board and the support price of Rs 150. The scheme is being implemented in collaboration with the Rubber Board. This will ensure that all small rubber growers get an assured price of Rs 150 each kg of rubber,” Mani said. The current price for benchmark RSS-4 grade rubber is at Rs 131 every kg.
Noting the state government intends to set up a fund not exceeding Rs 500 crore from its budgetary provision for the purpose, Mani said the earmarked amount would be sufficient only to extend support for the purchase of 25 per cent of rubber produced in the state.
“This will be too inadequate to bolster rubber plantation and provide meaningful assistance to farmers,” he said.
“I request Government of India to extend Rs 500 crore support from the Price Stabilisation Fund to supplement the resources of the state,” Mani said in the memorandum, adding the assistance would provide relief to one million rubber growers in the state.
Mani also stated the recent decision of the Centre to keep Kerala out of rubber subsidy scheme had dealt a huge blow to farmers in the state and has demanded its reconsideration. He said the decision had come at a time when farmers in the state were pressing for the enhancement of rubber subsidy and were reeling under a sharp fall in rubber price from Rs 240 to Rs 120 per kg.
He said the subsidy for rubber re-plantation should be raised to Rs 50,000 each hectare from the existing Rs 25,000.
Mani further sought appointment of a full-time chairman for the Rubber Board. Presently, Spices Board chairman A Jayathilak is holding the additional charge of the Board.
Meanwhile, Union commerce minister Nirmala Seetharaman said Kerala would not be excluded from the subsidy scheme. She said the the ministry would reconsider the decision.
