Government Hikes Outlay For Rubber Sector, Growers To Get Rs 40,000 Per Hectare

The Union government said it has hiked financial assistance to rubber growers as it seeks to bolster domestic production and slash imports of the material used to make tyres and medical gloves.

The outlay for rubber growers would rise 23% to Rs 708.69 crore over the years ending March 2025 and 2026 under the ‘Sustainable & Inclusive Development of Natural Rubber Sector’ scheme.

This additional financial assistance would go towards planting rubber in traditional and non-traditional growing areas and enhancing the quality of homegrown natural rubber, according to the Ministry of Commerce. It will also help cover higher production costs and provide additional incentives to growers, according to a statement.

The revised scheme will increase the outlay and cover the entire value chain, beginning with planting, processing and the point of sale, according to Amardeep Singh Bhatia, additional secretary at the Department of Commerce. 

“…a large part of this goes in the form of assistance to the growers for planting in new areas as well as replanting of old plantations,” Bhatia told the media on Monday. “Here, the assistance increased substantially from the earlier Rs 25,000/hectare to Rs 40,000/hectare to help cover the increased cost of production and provide incentives to the growers.”