Nearly two months after authorities launched an incentive to stimulate sheet rubber exports, the scheme has brought little cheer to the vast rubber plantations across Kerala.
Introduced on March 15 ahead of the Lok Sabha elections, the scheme offered an incentive of ₹5 a kg for sheet rubber exports. Its aim was to counteract the lower price quotes from other rubber-producing countries that were preventing Indian exporters from benefiting from the global rise in sheet rubber prices.
The farmers, however, argue that the scheme has failed to address their concerns, as it has not significantly boosted the confidence of private exporters. Babu Joseph, general secretary of the National Consortium of Rubber Producers’ Societies (NCRPS), suggests that State government agencies like Rubco or the Plantation Corporation of Kerala should have spearheaded the initiative for it to be effective.
Prices drop drastically
The fall in domestic prices, according to him, was an issue particularly concerning Kerala as the cost of production was much lower in the plantations across the northeast. “This is why we say that State government agencies should have led the export of sheet rubber. Had the exports taken place as envisaged, it should have led to a rise in domestic prices as well,” he noted. He added that with the onset of the tapping season in Kerala in the next few weeks, domestic prices are dropping drastically.
The Rubber Board authorities, meanwhile, pointed out that sheet rubber consumption accounted for hardly 10% in the global market. Moreover, the major sheet consuming nations also have long-term contracts for the procurement of sheet rubber.
‘Served its purpose’
“The scheme was never expected to boost exports significantly. But it has served its purpose in the domestic market. It revived a great deal of confidence in a market that was nearly stagnant. It created a feeling that India is now ready for export, which, in turn, helped in firming up domestic prices,” said a senior board official.
According to him, a decision on whether the board would extend the scheme after its present tenure of June 30 would be made based on a review of the market response.
