Kerala's rubber farmers struggle like Goa's miners

Panaji: Aside from vying for the title of 'God's own country' and competing for tourists, Kerala and Goa have another thing in common. Goa's mining magnates and Kerala's rubber farmers are all praying for China, praying that the red dragon's economy revives enough to spur demand.

As 'anti-national' as it may sound, the fact remains that the survival of Goa's mining industry and Kerala's rubber plantations depends on the growth of China's economy. The same woes that plagued Goa's mining companies are playing out in Kerala, where the sharp drop in international rubber prices has plunged Kerala's rubber cultivators into a crisis.

Rubber prices have crashed to a six-year low of 90-95 per kg making it unviable for farmers to continue cultivating the agriculture-categorised crop. "With the rise in international prices, labour prices had also risen and the lifestyle of farmers changed. Now, though prices have crashed, labour is expensive and farmers have car loans and home loans to repay," a rubber trader said.

To provide some relief, the Union government is contemplating an insurance scheme for the plantation sector including rubber which would cover price fluctuations among other perils, with premium shared by the central government, state governments and beneficiaries.

"The precarious situation of small and marginal rubber growers to low and volatile rubber prices need special mention. Natural rubber prices have been cyclical over history, responding to cycles of economic growth. The fall in rubber prices from 2012 onwards has been sharper and the impact on rubber growers is deeper which will have implications for future planting and availability," ministry of commerce and industry additional secretary Rajani Ranjan Rashmi said.

India annually produces rubber products worth around 85,000 crore and exports rubber products to the tune of 18,000 crore. "There is vast potential for the industry to grow and it is the government's responsibility to provide a conducive environment to enable the Indian rubber industry to realize its full potential," Rashmi said.
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