LDF govt in Kerala Hikes Rubber Subsidy Ahead of Election Schedule Release

Just before the Lok Sabha election schedule announcement, the LDF government in Kerala announced an increase in the rubber subsidy, fulfilling a promise made in the state budget for 2024-25. This move is intended to support struggling rubber farmers in the state.

The subsidy for rubber will be raised from Rs 170 per kg to Rs 180 per kg, as announced in the state budget. Additionally, the government sanctioned Rs 24.48 crore as a production bonus for rubber farmers. Besides that, the Rubber Board had announced an incentive of Rs 5 per kg for the export of rubber sheets.

In the statement issued by the minister's office, Balagopal said the shortfall in rubber prices from the market rate would be given as a subsidy to the farmers. These measures aim to bridge the gap between the market price and the production cost of rubber, which has been negatively impacted by central government policies according to the state Finance Minister K.N. Balagopal.

Over 1.5 lakh small and marginal rubber farmers registered with the Rubber Board will benefit from this scheme. The government also announced Rs 628 crore towards clearing pension arrears for retired employees and teachers. They allocated Rs 130 crore for the Life Mission project, which provides homes for the homeless.

This announcement comes amidst criticism by Prime Minister Narendra Modi regarding the LDF and UDF governments' inaction on rubber farmer issues. It also follows a recent announcement by the Rubber Board of a separate incentive for rubber sheet exports.