The Kerala Government has officially raised the support price of natural rubber to ₹250 per kg from ₹200, delivering on a major commitment made in the State Budget to provide relief to rubber growers.

The revised support price under the Rubber Production Incentive Scheme will apply to purchase bills dated July 3 onwards, according to a statement issued by the Chief Minister’s Office (CMO).

Announcing the measure in the Budget, Chief Minister V.D. Satheesan had highlighted the challenges faced by the rubber sector, particularly the steady increase in production and cultivation costs.

For several months, farmers, rubber growers’ associations and elected representatives had been pressing for a revision of the support price, citing mounting input costs and shrinking margins.

Taking these concerns into account, the State Government approved a 50 per kg increase in the support price, raising it from Rs 200 to Rs 250, the CMO statement said.

Meanwhile, natural rubber prices continue to rule firm, with RSS IV grade currently fetching around ₹282 per kg, supported by adequate rainfall in key rubber-growing regions.

However, the farming community said that productivity gains have been largely confined to the central Travancore belt, where rainfall has been favourable. In contrast, yields remain subdued in plantation areas of Palakkad and Malappuram due to insufficient rains.

Welcoming the government decision to increase the support price of natural rubber to ₹250 per kg, George Valy, President of the Indian Rubber Dealers Federation said that the government should initiate steps to increase production in untapped plantations at panchayat levels by finding suitable tappers. Adding new areas for production would help achieve an additional 1 lakh tonnes of natural rubber in the market and enhance revenue of natural rubber farmers, he said. 

However, he pointed out that the shortage of rubber tappers has emerged as a major challenge for plantations, as younger workers are increasingly reluctant to take up the profession because of relatively low wages. The sharp rise in latex prices to around ₹280 per kg has also adversely impacted rubber sheet production.

In view of the prevailing situation, the natural rubber sector has urged the government to bring rubber tappers under the Centre’s employment guarantee scheme. Such a move would help improve wages and address the shortage of skilled tappers to some extent, Valy said.

Published on July 21, 2026