Rubber appears to be losing its premier status among plantation crops in Kerala, if the fast declining sales in the nurseries selling saplings are an indication.Frustrated by the low prices that have been prevailing for nearly a year, the growers are looking at other options which provide them with better remuneration.
The fall in prices to a near fiveyear low of Rs 120 per kg has hit the development of rubber plantations in other regions – such as northeastern states, Karnataka, Goa and Maharashtra – where rubber cultivation had started growing rapidly.
With sales plummeting 30-50%, private rubber nurseries are feeling the pinch.”We have 800 members and around 15% have stopped operations. If the low price situation persists, then almost 35% will fold up in two years,” said Josekutty Antony, secretary of All Kerala Rubber Nursery Owners Association.
Benny, who runs Karinjae Nursery at Bantwal near Mangalore, said while rubber prices have slumped, prices of arecanut or supari have increased. Karnataka is the largest producer of arecanut or supari.”Around six-seven years ago, when rubber cultivation was catching on, arecanut prices were down and hence more farmers were interested in rubber as the prices were higher,” he said.
According to former rubber production commissioner J Thomas, in places like Arunachal Pradesh, the pace of growth in rubber planting has slowed.”Farmers have started looking at other crops as rubber prices have been low for a long time,” said Thomas.
The dwindling sales indicate disinterest in replanting. Such a trend is more prevalent among the growers in northern Kerala districts for whom the rubber now ranks below coconut, arecanut, pepper, etc. But the growers in southern parts of the state, particularly Kottayam, are still dependent on rubber.”Even they have started devoting a part of their estates for planting fruit trees, spices like nutmeg and teak,” said Josekutty.
Large plantations don’t appear to be in a hurry to go for replanting.”We have around 1,800 acres and next year we will think twice before going for replanting as it is no longer viable. We are even thinking of retrenching labour to cut costs,” said JK Thomas, managing director of Malankara Plantations.
Industry experts say the rubber prices are not likely to see a rebound in the next two-to-three years because of excess supply in the global market. Though Indian rubber prices are around Rs 15 per kg higher than the international prices, they are still below the cost of production.