The price of rubber declined to Rs 110/kg and the rubber growers are incurring loses just to produce the product. The production cost is Rs 140/kg, so growers are losing money rather than gaining it. If the prices keep going south, many growers would be pushed to stop rubber tapping altogether.
Rubber growing is the major industry in Sullia, Puttur and Belthangady taluks in Dakshina Kannada district. Fifty percent of all the rubber in Karnataka comes from the Dakshina Kannada district. If rubber tapping stops, an estimated 100,000 people would be affected.
Some growers in India have already stopped, bringing the total production down from 35,000 tonnes to 25,000 tonnes.
Different groups of rubber growers suggest different ways to cope with the price drop. A group submitted a memorandum to increase the import duty while another asks for subsidy like what was done in the Kerala.
Rubber growers from Dakshina Kannada, Shivamogga and Chikkamagaluru districts are set to meet the Chief Minister on September 3.