The Rubber Board has taken initiatives to boost sheet rubber production and reduce scarcity in the domestic market. When the former remains higher, the Rubber Board is adopting a system to compensate farmers for the difference in prices between field latex and sheet rubber of RSS-4 Grades, up to a maximum of $2 per kg.
Farmers who sell sheet rubber directly to Rubber Producer Societies or Rubber Board firms will be eligible for the programme, which has a $5,000 limit per farmer. From December 1 to February 28, 2022, the scheme will be in effect for three months. According to KN Raghavan, Executive Director of the Rubber Board, field employees would undertake verifications, and the compensation amount will be transferred directly to farmers’ bank accounts.
“This would assist rubber farmers in addition to the monies given under the scheme, since they will be able to take advantage of the high prices existing in the local market,” he said. He pointed out that a significant transition from sheet rubber to field latex is bad news for farmers because a shortage of sheet rubber would force large-scale rubber imports. This could result in a decrease in the price of all types of rubber, and it should be taken into consideration.