As we celebrate the 75th anniversary of independence, the achievements of the country need to be remembered. The Five Year Plans, the Green Revolution and the liberalization policy adopted in 1991 have all helped this growth. India’s economy ranked 10th in 2014 by SBI. According to a new study by the research department, it jumped to the 5th position in 2022. 3rd place gain in 2029 is also predicted. The bottom line is that after America and China, it reaches the status of India. It is argued that we are lagging behind developed countries like Japan, Germany and Britain. Efforts are being made to digitize money and commodity transactions and the banking sector.
Amidst the gains, the country’s biggest asset, the agriculture sector, and farmers are fighting for survival. Governments which are supposed to protect the farmers, the laws made in the legislatures and the middlemen do not adopt policies that help the survival of the farmers. Adverse weather conditions and new diseases affecting agricultural crops make the situation even more dire.
The dire crisis faced by the rubber farmers needs to be examined separately. A situation has arisen where the farmers are withdrawing from the cultivation of rubber, which is a raw material used in the industry on a large scale.
In order to find out the real reasons for the decline in rubber prices, it is necessary to evaluate the policies of production and marketing of rubber at the national and state levels.
* Global rubber markets
The available data does not support the claim that the availability and cheapness of rubber in the international market is the cause of the problems we are facing locally. International production of natural rubber increased from 6.8 million metric tons in 2000 to 13 million metric tons in 2020. Major rubber producing countries such as Thailand 4,372 metric tons, Indonesia 3,037 metric tons, Vietnam 1,222 metric tons, Ivory Coast 950 metric tons, China 693 metric tons, India -685 metric tons, Malaysia 515 metric tons, and several other countries together recorded 1,534 metric tons. (measurements in 1000). According to the latest estimate, the production shortfall is two lakh metric tonnes.
Studies have shown that the high density, vibration resistance factors and crack protection properties characteristic of natural rubber are preferred over synthetic rubber. It can also be understood that the price decline is not a permanent phenomenon as the demand for rubber in the international arena is high.
While the post-Covid crisis has been cited as a reason for the fall in prices, history has shown that on many occasions that have wreaked havoc on the world, there have been large increases in the price index since then. Market consumption growth was -33% after World War I, 45% during Spanish F�, 1937 Depression -19% World War II 12%. Examples are that the market is not expected to fall in price even though this situation has not been evident post-Covid.
* Indian market for rubber
90% of the country’s rubber production is in Kerala. Spread over an area of 5.45 lakh hectares. 11.5 lakh farmers are the primary beneficiaries. A large percentage of farmers are not ready to do repeated cultivation as they are facing huge losses due to fall in prices. Another group of farmers are ready to give up rubber cultivation and try other crops. Another category of farmers who could not tap rubber with laborers either tapped on their own or gave up tapping. While this situation prevails, the country’s rubber production is 7.75 lakh tonnes. But the consumption requirement is estimated at 12.4 lakh tonnes. Last year, 5.45 lakh tonnes of rubber was imported in this way. Food and consumer goods prices have doubled in the last ten years. At the same time, rubber farmers are in a pitiful situation as the price of rubber rose to Rs 238 in 2011 and has dropped to Rs 145 after ten years.
The Rubber Board is in a rush to promote rubber cultivation in the North Eastern states, estimating that the consumption requirement of rubber will be 15 lakh tonnes by 2025 without taking steps to help the struggling rubber farmers. There is also a move to introduce a special subsidy for this. But for years, rubber farmers in Kerala have been suffering from not getting even the proper subsidy for re-cultivation.
Also, the information that the automotive tire manufacturers are going to cultivate rubber in 2 lakh acres of land in the next 5 years with an investment of 1100 crore rupees will also pose a challenge to the rubber farmers.
Farmers’ needs
1. Central Government should have a mechanism to monitor the uncontrolled rubber import policy and take necessary steps to ensure fair price to the farmers.
2. Implement Abhijit Sen’s recommendations on support prices.
3.Political parties should adopt a consensus position keeping farmers’ interest in mind. Accusations and counter-accusations are not the solution to farmers’ problems.
4. Allocate special financial assistance to rubber farmers for fertilizer, tapping equipment etc. from Rubber Board.
5. Make the Rubber Production Incentive Scheme implemented by the State Government operational without interruption. Sheet and latex should be given equal weightage and support price should be distributed. Because most of the small farmers who are unable to make sheets are selling it as latex today.
6. Shift rubber from industrial crop to agricultural crop. Adopt road rehabilitation as a policy by the government.
Farmers should be able to continue their lives through rubber farming that has been going on for generations. It is hoped that the authorities will take necessary steps for this.
Joji Maret Manimala