The Kerala government today approved a formula to help rubber farmers after holding discussions with 12 tyre manufacturing companies in the country.
Talking to reporters after cabinet meeting, Chief Minister Oommen Chandy said as per the formula, companies would purchase natural rubber from dealers and agents at a price fixed by Rubber Board considering the international price of natural rubber plus 20 per cent customs duty and five per cent purchase tax.
State Chief Secretary Bharat Bhushan and Rubber Board Chairman Jayathilak would monitor the progress of the scheme, he said.
Besides Chandy, Fiance Minister K M Mani and Industries Minster P K Kunhalikuty were among those attended the meeting.
Meeting with tyre manufactures were called in the wake of serious financial crisis being faced by rubber farmers in the state due to sharp fall in the price of natural rubber.