Union Budget 2026: Kerala rubber farmers demand price stability

Concerns about the long-term viability of rubber cultivation in Kerala are raised by the growing difficulties faced by the state's rubber farmers as labour shortages, rising production costs, and unstable market prices continue to reduce their earnings.

Farmers claim that when production is low, rubber prices frequently increase, which keeps growers from fully profiting from higher market rates. Many farmers are choosing to sell liquid latex in order to avoid additional processing costs, even though processing rubber sheets can result in higher returns.

As profitability declines, several farmers are gradually shifting to alternative crops, signalling a possible decline in rubber cultivation across traditional growing regions.

Abey Ipe, Member of the Kerala Pradesh Karshaka Congress, said that despite an increase in rubber prices, growers are not reaping the benefits due to structural issues in the sector.

“Today the price of rubber has shot up over Rs 200 per sheet, which is more than the MSP declared by the State government. Despite this rise in the price,the condition is such that the rubber growers are not being benefited from this. Due to a number of crisis in the rubber sector here, the growers are being forced to withdraw from rubber sheet production. There has been a 40% decline in the production of rubber in the sector. Despite providing a higher amount of subsidy, the rubber growers are still hesitating to engage in the sector. And the prime reason for that is the lack of prices stability in the rubber sales.,” he said.

Meanwhile, the Rubber Board has maintained that the government continues to support rubber growers through multiple welfare and assistance schemes and plans to enhance support in the coming period.

Vasanthageshan, Executive Director of the Rubber Board, said the government is implementing several initiatives to strengthen the sector.

“The government of India through Rubber board, we are implementation the planting assistance scheme, apart from the various other schemes like rain guarding, spraying, labour welfare schemes, the group processing centers and we are supporting the smoke house. The rate for planting assistance in Kerala in traditional area stands at Rs 40,000 per hectare during this EFC, this EFC is going to end March 2026 in another 2-3 months , it is going to end. After that the Rubber Board has proposed the enhanced rates for planting assistance and it is under process by the various ministries before budget , it would be enhanced.” he said.

With the Union Budget approaching, rubber farmers are urging the government to introduce targeted policy interventions to stabilise prices and revive confidence in the sector.