Thailand reduces rubber farming; Farmers in Kerala hopeful
Kochi: Thailand’s decision to reduce rubber farming by 21 percent is likely to increase the rubber price at a global level and this will reflect in Kerala as well. Thailand is the source of about 40 percent of the natural rubber produced in the world.
The country has decided to reduce rubber plantations by 21 percent within 20 years. They have advised the farmers to change from rubber farming five years ago. Export of rubber also was reduced from May last to September.
Production in Thailand
Rubber is cultivated in 37.3 lakh hectares of land in Thailand. This is planned to be reduced to 29.4 lakh hectare. Thailand also intends to increase production by 60 percent in every 0.16 hectare, increase average income by 65 percent and raise internal use from 13 percent to 35 percent.
The Rubber Board authorities said that the decisions taken by Thailand, the largest producer of rubber, will create huge waves in the market. However, Infarm national secretary general V C Sebastian said that Thailand reducing rubber production is not likely to affect global market as Cambodia, Vietnam and Laos have increased production.
Rubber price consistent in Kerala
For about one month, the price of RSS-4 type rubber remains at around Rs 130/kilo. However, rubber is not available aplenty in the market. Though production is likely to increase slightly in the winter, chances are low for a price hike, said the Rubber Board authorities.
Largescale merchants have extended import contracts to one more year as a financial crisis exists here and also reduced buying rubber from the country. This hinders the price from shooing up.