Natural rubber prices remained firm at around ₹282 per kg for RSS IV grade, supported by adequate rainfall in key growing regions, even as the Kerala government officially raised the support price to ₹250 per kg from the earlier ₹200, according to a report by The Hindu BusinessLine.
Support Price Hike
The Kerala government has officially raised the support price of natural rubber under the Rubber Production Incentive Scheme to ₹250 per kg from ₹200 per kg, delivering on a commitment made in the state budget. According to a statement from the Chief Minister’s Office (CMO), the revised support price will apply to purchase bills dated July 3 onwards. Chief Minister V.D. Satheesan had announced the measure in the budget, highlighting the challenges faced by the rubber sector due to rising production and cultivation costs. The state government approved a ₹50 per kg increase in the support price, raising it from ₹200 to ₹250.
| Metric | Old Support Price | New Support Price | Change |
|---|---|---|---|
| Support price per kg | ₹200 | ₹250 | +₹50 |
| Effective date | – | July 3, 2026 | – |
Supply-Side Dynamics and Regional Disparities
While overall natural rubber prices remain firm, 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, according to the farming community quoted in the report.
George Valy, President of the Indian Rubber Dealers Federation, welcomed the support price increase. He 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 could help achieve an additional 1 lakh tonnes of natural rubber in the market and enhance revenue of natural rubber farmers.
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 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.
Price Outlook and Market Context
Natural rubber prices continue to rule firm at around ₹282 per kg for RSS IV grade, according to the report. The support price increase provides a floor for growers’ returns amid rising input costs. The market will continue to monitor rainfall patterns in key growing regions and policy measures to address the tapper shortage, which could influence both production volumes and price stability going forward.
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