Rubber Boost: Govt to Hike Planting Subsidy to Rs 40,000 for Kerala Farmers

The BJP-led Union government is preparing to announce initiatives aimed at supporting rubber farmers in Kerala. These include a hike in the subsidy for planting or re-planting rubber, increasing it from Rs. 25,000 to Rs. 40,000. This announcement is expected after the ongoing parliament session.

Prime Minister Narendra Modi earlier urged collaboration between the tyre industry and farming community to boost rubber production. The Rubber Board chairman Sawar Dhanania reported that the expenditure finance committee of the Union Ministry of Commerce and Industry approved the subsidy increase. He also mentioned the formalization of special packages previously provided to farmers. Funding for schemes related to rain-guarding of rubber and the welfare of growers and tappers, although potentially reduced, will be regularized.

In the 2017 Union budget, the Rubber Board received an allocation of Rs 170 crore, which has been increased to Rs 268 crore. The government plans to further raise this allocation to Rs 340 crore from the next year. The Rubber Board is taking steps to ensure fair pricing for rubber wood as part of replantation efforts and plans to announce rubber wood prices weekly, similar to rubber price announcements.