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Cabinet nod for rubber project in Kerala

Special Correspondent

NEW DELHI: The Union Cabinet has approved two projects — together worth Rs. 510 crore — to increase rubber productivity. While the larger, Rs. 240-crore project pertains to replanting in the existing acreage, the other seeks to extend the spread of rubber in the northeast as there is little scope of bringing more land in Kerala — which dominates the rubber market — under the plant.

Minister of State for Commerce Jairam Ramesh on Wednesday said the focus of the replantation programme would be Kerala, home to 92 per cent of the rubber plantations across the country. Under the scheme, the government planned to help replant rubber on 41,750 hectares during the 11th Plan period.

Higher subsidy

Kerala planters with a holding of less than five hectares will be eligible for a 20 per cent subsidy.

The subsidy is higher in non-traditional areas at 25 per cent of the current cost of planting.

The Ministry was open to revisiting the subsidy for Kerala, Mr. Ramesh said. Conceding that the project was coming at a time when the price of rubber had risen to a record high, he said the planters should still make the best use of it, keeping in mind the future. “Our rubber trees are old and there is need for replantation to increase production.”

The package dedicated to the northeast is aimed at extending plantation in the region, where the Rubber Board has identified 4,50,000 hectares.

At present, only 58,432 hectares is under rubber and the government hopes to extend the area by 25,000 hectares during this Plan. For this project, Rs. 170 crore has been sanctioned.

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