In light of the declining rubber prices, Indian rubber farmers will surely take the brunt. That’s why the Indian government launched the Rubber Production Incentive Scheme (RPIS).
The scheme ensures that farmers will always be paid Rs 150/kg for their rubber by subsidizing the needed amount. Chief Minister Oommen Chandy launched the program by sending the subsidies to farmers via online bank transfer.
The project’s sustainability is still unsure because the funds may dwindle soon. So Chandy appealed to the Centre to help continue the project.
“We have made representations to the Centre umpteen times, but in vain. The state was forced to introduce the scheme since we cannot just wish away the hardships of the farmers. We’ll approach the Prime Minister and Commerce Minister again and prevail upon the Centre for substantial and continuous financial support for the scheme,” he said.
Finance Minister K M Mani said, “The RPIS scheme was announced when the price of RSS-4 rubber in the domestic market was Rs 130/kg. If the price difference and equivalent subsidy was only Rs 20/kg then, now the market price has crashed to Rs 108/kg and the slump continues, and thus the gap has widened. Compensating the difference with a Rs 150/kg cut-off, the burden is evidently huge.
Against this backdrop, a minimum Rs 700 cr is needed to sustain the scheme. The state is hopeful of a Central allocation.”
The scheme already benefits 100,000 rubber farmers while registration and verification process for other rubber growers are still ongoing.