Kerala Chief Minister VD Satheesan (file photo) | Photo Credit: Nirmal Harindran

Kerala’s small and marginal farmers in natural rubber farming, are jubilant over the budget announcement in enhancing the support price of the raw material to ₹250 from ₹200.

The increase was widely expected as the ruling United Democratic Front (UDF) had promised a higher support price for rubber in its election manifesto. The existing support price of natural rubber under the “Rubber Production Incentive Scheme” was introduced to help the rubber farmers from dwindling prices, said the Chief Minister VD Satheesan while presenting the budget speech.

PC Cyriac, former chairman of Rubber Board said the decision would provide significant relief to small growers, who account for nearly 70 per cent of the State’s rubber farming community. He said that the higher support price would encourage more farmers to resume tapping operations and help improve productivity. However, he pointed out that the immediate impact may be limited as domestic rubber prices are currently trading above ₹250 per kg.

The relevance of the enhanced support price will be felt when international and domestic rubber prices declined. In such a situation, the guaranteed price would provide confidence to farmers to maintain and improve production without fear of a sharp fall in market returns, he said.

George Valy, President, Indian Rubber Dealers Federation, said the announcement was in line with the UDF’s poll promise and would encourage growers to bring untapped plantations back into production while also motivating them to replant ageing rubber trees. He estimated that around 20-25 per cent of rubber plantations remain untapped, of which 10-15 per cent consist of senile trees that require replanting.

Valy urged the government to conduct a survey of untapped plantations across panchayats and introduce incentives for rubber tappers to help boost production. He also expressed confidence that the State would not incur a significant financial burden from the revised support price, as domestic rubber prices are unlikely to fall below ₹250 per kg in the coming months amid firm international market trends.

 “We would like to appreciate the budget announcement to enhance the support price for natural rubber. However, we would like to urge the government that the facility should be extended to all the growers in Kerala without any restrictions”, TR Radhakrishnan, chairman, Association of Planters of Kerala.

Industry representatives believe that the higher support price will serve as an important safety net for farmers, encourage increased tapping activity, and support long-term investments in replanting and productivity enhancement across Kerala’s natural rubber sector.

Published on June 19, 2026