Rubber prices surge past ₹200 per kg in Kerala amid supply crunch

Kottayam: Domestic rubber prices have once again crossed the ₹200 mark, driven by supply shortages and rising international rates. On Wednesday, RSS-4 grade rubber was priced at ₹206 per kg in the open market. Traders report that despite willingness to buy at this rate, supply remains limited. Last August, RSS-4 prices had peaked at ₹247 per kg.

The extreme summer conditions have led small-scale farmers to suspend tapping, significantly reducing production. Over the past three days, the price of RSS-4 in Kottayam and Kochi markets has remained steady at ₹204 per kg, while the Agartala market recorded a price of ₹195 per kg.

In the international market, RSS-4 prices continue to stay above ₹200 per kg, with Bangkok markets registering a rise to ₹207.95 per kg on Wednesday. Global prices and container shipping costs remain high, making imports less viable. As a result, companies are increasingly sourcing rubber from the domestic market, further driving up prices. Traders anticipate a continued price surge due to supply constraints.

Subsidy disbursement faces technical glitches
The Rubber Board's subsidy distribution has faced disruptions due to a technical error, resulting in some farmers receiving excess payments while others got less than their entitled amount. The issue affected the ₹21 crore subsidy allocated for replanting and new plantations, with approximately ₹40 lakh mistakenly credited to accounts.

Around 9,000 farmers received excess payments, with some getting up to ₹15,000 more than expected, while nearly 300 farmers received lower-than-due amounts. Banks have taken steps to prevent the withdrawal of excess payments, while authorities are working on disbursing the remaining amounts to those who were underpaid.

Farmers have also expressed frustration over delays in payments for rain shelters and pesticide spraying subsidies. Officials attribute the delays to the transition to an online payment system via the Public Financial Management System (PFMS). To expedite disbursements, the Rubber Board will remain operational on March 29 and 30.

The National Federation of Rubber Producers' Societies has called for action against officials responsible for the subsidy disbursement errors. According to Babu Joseph, the federation's general secretary, rubber producer groups lost ₹5.4 crore in the 2022-23 rain shelter and spraying scheme due to official negligence. The federation has urged authorities to hold those responsible accountable and prevent future lapses in subsidy allocation.