(This story was originally

August 13, 2014)

KOCHI: Natural rubber growers are at their wits’ end in the face of continued price declines. Since July 7 Since July 7. Month 1 Since Tuesday, prices have fallen by 9% to reach Rs 132.50 per kilogram which is the lowest level in four and a half years.

Nirmalalalalala Sitharaman’s recent announcement that imports will not increase further will only add to the woes given that imports have increased by 48% in the first four months of the current fiscal.

The reason why most small growers do not tap rubber during heavy rains in Kerala is simply because the current prices are not enough to cover the operational costs of installing rain screens, labor and fertilizer costs.

PM Thomas, general manager of Pala Rubber Marketing Cooperative said, “Growers who were paying Rs 20 for an umbrella are now paying Rs 25 and wages have increased. Even those who go to cut rubber just cut trees.” “I do,” he said. The Rubber Association is a leading farmers’ rubber cooperative.

The fall in prices of rubber production seems to have affected the economy of Kottayam, a rubber-producing region in Kerala. Growers are unable to sell their properties due to the fall in real estate prices. Domestic rubber prices are similar to international prices. International prices have been falling for some time due to excess supply.

Thomas believes that the government should improve the prospects of rubber exports by providing subsidies. This is especially true for growers, whose procurement programs have failed due to lack of funds.

Harrison Malayalam is India’s largest rubber grower, and a senior official said large tracts of land have also been affected by falling prices.

“The average price we get is Rs 110 per kilogram because we get about 25% rubber with lower technical specifications. Meanwhile, the cost including tree plantation is about Rs 160 per kilogram.” The ban on felling of rubber trees has led to a decline in the company’s profits.

“In the four months to July In the month, we lost Rs 166-7 million million rupees from rubber. As prices are unlikely to rise, we are seriously looking at reducing our operating costs,” he added.