Centre ignoring crisis in natural rubber sector, says Kerala Chief Minister

Chief Minister Pinarayi Vijayan on Tuesday accused the Union government of neglecting the ongoing crisis in the natural rubber sector.

Addressing a mega convention of the Left Democratic Front (LDF) here in the evening, the Chief Minister blamed the trade agreements signed by the A.B Vajpayee government and the second United Progressive Alliance governments at the Centre for the sharp decline in rubber prices. The agreements had allowed the import of rubber at reduced costs, he said. “Though these agreements also empower the Centre to impose safeguard duties when necessary, the government has failed to act,” he said.

Mr. Vijayan also criticised the Centre for refusing to implement a support price mechanism for rubber. He highlighted the State government’s efforts to cushion the impact of price drop by offering compensation when the market price fell below ₹180 a kilogram.

Continuous decline

“Rubber prices, which peaked in 2011, have been on a continuous decline ever since, even as prices of rubber tyres, the primary end-product of natural rubber, continue to soar,” he noted.

As the State produced nearly 72% of India’s natural rubber and had 66% of the total area under rubber cultivation in the country, Kerala’s economy was closely tied to the rubber-based industry, the Chief Minister said.

Agriculture Minister P. Prasad and Cooperation Minister V.N. Vasavan were also present.