Kochi, Mar 24 (KNN) In a view of the growing demand for natural rubber in the market, the All Indian Rubber Industries’ Association (AIRIA) has backed a call to declare a minimum support price (MSP) of Rs 200 a kg for rubber, reported The Hindu.

In an online interaction with The Hindu on Thursday, the Association president, Ramesh Kejriwal said that an allocation of Rs 600 crore in the Kerala Budget for rubber subsidy would help the sector grow.

He pointed out that India was the fourth largest natural rubber producer, and Kerala accounted for 90 per cent of production in the country.

The country produced 7.75 lakh tonnes of rubber during 2021-22 as against 7.15 lakh tonnes during 2020-21. The consumption of rubber was 12.38 lakh tonnes during 2021-22 as against 10.96 lakh tonnes during the 2020-21 period.

“Most rubber-using industries, excluding large ones like tyre makers, are in the MSME sector. The government must ensure that the terms of free trade agreements (FTA) benefitted the MSMEs which could compete globally with the help of a level-playing export infrastructure, better financing conditions, education on suitable marketing channels, and facilities for them to work with trading companies,” he said.

One of the Key demand of the association is the diversification of the agroforestry system in a way where cash crops could not be monoculture. “The government should encourage more research on the ecological and economic effects of rubber plantations on rural communities,” he added.

Rubber farming has substantial social impact considering that natural rubber is largely grown by small holders. Around 92 per cent of production is from small holdings of below 10 hectares.  (KNN Bureau)