Rubber cultivation in Northeast

Rubber cultivation in Northeast

The Central government's plan to expand the area under rubber cultivation in the northeast region to two lakh hectares over the next five years is an ambitious target, given the stagnation in production and average yield price of natural rubber. Four major tyre companies represented by the Automotive Tyre Manufacturers' Association (ATMA) signed a Memorandum of Understanding in March undertaking to contribute Rs 1,000 crore towards achieving the goal is expected to unlock the potential in the region. It is a paradox that while growth in the automobile sector in the country has fuelled the demand for natural rubber, production has been stagnating due to low remunerative prices. The plan to expand cultivation in the region is in tune with the theme of Rubber Board's Campaign for 2021 -'Resurgence in rubber for 'Aatmanirbhar Bharat'. According to the Rubber Board, 65% of natural rubber is consumed by the automobile industry. The demand-supply mismatch has created opportunities for traditional and new growers. Production of natural rubber in the country in 2020-21 financial year was 7.15 lakh tonnes against the consumption of over one million tonnes. The shortfall was met with the import of about 4 lakh tonnes. The shortfall against the rising demand explains the interest of the ATMA in promoting the expansion of rubber cultivation in the region. Tripura is the second-largest producer of natural rubber after Kerala, and therefore, can lead other states in the region in implementing the Rubber Board's plan for expansion. The Rubber Board is procuring planting material with Rs 12 crore already transferred by the ATMA to a special account opened by the board. Motivating the existing growers to expand the area will be a challenging task for the board due to the low yield price. An increase in average price in 2021 to Rs 14,185 for every 100 kilogrammes of Ribbed Smoke Sheet-4 standard rubber from Rs 13,552 in 2019-20 and Rs 12,595 has revived hope for a resurgence in rubber cultivation and production in the country. However, it is still way below the price level of 2011-12 Rs 20,805, the highest ever in past 15 years which may require more efforts to convince existing growers to expand cultivation as well as new growers to take up rubber cultivation. The total area under cultivation has remained almost stagnated over the past five-six years and the area has increased by a little over 12,000 hectares from 8.10 hectares in 2015-16 to 8.22 lakh hectares in 2020-21 which speaks volume about the high potential in the country as well as in the region remaining untapped. The average yield per hectare has also been stagnating at a little over 1400 kilogrammes over the past five years compared to a higher yield of around 1800 kg/hectare from 2005-06 till 2011-12. Tripura has about one lakh rubber growers, and the state accounts for about 84,000 hectares under rubber cultivation. Even though the average yield in the state is 1350 kg/Ha against 1553 kg/ha in Kerala, heavy rains in the southern state have led to an overall decline in the country's production. India is the largest consumer of natural rubber and imports from Indonesia, Malaysia, and Thailand. Decline the automobile production due to shortage of chips has also lowered consumption of natural rubber by the tyre industry which has prevented the demand-supply equilibrium from being offset by a rise in import following a drop in domestic production. A rise in the demand in the automobile sector is expected to push the demand for natural rubber grown in the country opening up opportunities for growers. The replanting of old rubber plants has become necessary to increase the yield and raise productivity. Rubber Board, as well as state governments extending helping hand and providing financial assistance for replanting, will be critical to the country becoming atmanirbhar (self-reliant) in natural rubber production. Rubber plantations have a long gestation period of seven years from planting to first harvesting, motivating people to take up rubber cultivation is a challenging task. Growers having assured livelihood support during the long gestation period require the government to incorporate it in the plan for expansion of rubber cultivation in the region. The first nationwide rubber census launched by the Rubber Board is aimed at estimating the total area under cultivation, several trees, age of trees, tapping system, system followed for protecting tapping process and harvest from rain and other information such as holding size. A comprehensive database to be generated from the census will help identification of potential areas of expansion in the region and elsewhere in the country. The Central and State governments arranging exposure visits of existing and potential growers in the northeast region to Tripura and Kerala to learn from the experience and expertise of growers in these two states will go a long way in realizing the untapped potential. The proposed plan of the Rubber Board will generate huge livelihood opportunities in the region if it can be implemented successfully.