Union Budget: Rubber Board gains, but growers left disappointed

A view of the rubber plantations in Kottayam
| Photo Credit: VISHNU PRATHAP

While the grievances of rubber growers remain unaddressed, the Union Budget presented on Saturday has given the Rubber Board reasons to celebrate.

The board has received an increased allocation of ₹360.31 crore, surpassing the revised estimate of ₹348.38 crore for the current fiscal. Commenting on the budgetary allocation, M. Vasanthagesan, executive director of the Rubber Board, noted that the board had already secured approval for its annual expenditure from the Expenditure and Finance Committee. The funds, he said, will be used to support key initiatives such as rain-guarding and planting assistance.

“The increased allocation provides the board with sufficient flexibility to finance all grower support programmes outlined in the annual Plan. The specifics of these initiatives will soon be shared with stakeholders,” he said, adding that a revised Budget estimate may be sought later, depending on the progress of various schemes.

However, rubber growers remain deeply dissatisfied, feeling let down by the Budget’s failure to guarantee a minimum support price for natural rubber.

“There’s nothing new in this Budget — just allocations for pre-existing schemes. Our demand for a minimum support price for small-scale growers has been ignored,” said Babu Joseph, general secretary of the National Consortium of Regional Federations of Rubber Producers Societies India.

Imports flood market

The organisation had recently petitioned a Parliamentary Standing Committee to raise the import duty on compound rubber from ASEAN countries, aligning it with the duty on natural rubber. Since major rubber-producing nations are part of ASEAN, large volumes of natural rubber — often mixed with additives like carbon black to bypass higher import duties —continue to flood the Indian market. “The import of rubber disguised as compound rubber is expected to reach nearly two lakh tonnes this year, worsening the crisis for domestic growers,” Joseph added.

KC factions’ reaction

Meanwhile, Kerala Congress factions, which have long championed the cause of rubber growers, have also expressed their frustration over the Budget’s perceived neglect of their concerns. K. Francis George, who represents the Kottayam Lok Sabha segment, and Rajya Sabha MP Jose K. Mani pointed out that the growers’ long-standing demand for ₹1,000 crore towards the price stabilisation fund for the crop has been completely ignored.