Rubber growers urge Union government to fix basic import floor price for natural rubber at ₹323 per kilogram

The Karnataka State Rubber Belegarara Hitarakshana Vedike, Ujire, has recommended in a new report that the Union government fix the basic import floor price of natural rubber at ₹323 per kilogram to protect the interests of domestic rubber growers.

Titled ‘Natural Rubber Economy in Karnataka at the Cross Roads’, the report was prepared by economist Vigneshwara Varmudy for the Vedike. It was submitted to the government through Captain Brijesh Chowta, Member of Parliament, Dakshina Kannada, on October 30, 2025.

The report stated that to support the price of domestic natural rubber and encourage growers to expand the area for rubber cultivation in the country, the government should increase import duties on dry and compound rubber, apart from reviewing and adjusting import duties based on market conditions and the domestic cost of production.

Impose import quotas

There is a need to impose import quotas to restrict the quantity of natural rubber that can be imported, to ensure that domestic producers are not adversely affected by excessive imports. Rubber imports should be monitored and controlled effectively, the report said.

It recommended that the government protect domestic growers by introducing a minimum support price for rubber under the Market Intervention Scheme.

The government may opt for a Price Stabilisation Fund to support rubber growers during periods of price fluctuations, the report added.

Package of incentives

With many rubber growers choosing not to cultivate the crop owing to a lower price — which is below ₹200 per kg — there is a need for a package of incentives so growers in Karnataka continue rubber cultivation. Natural rubber should be brought under the Crop Insurance Scheme. The government may appoint a High Power Committee to study prevailing problems and suggest measures in the State, it said.

The report stated that the demand for natural rubber in the country is expected to rise in the future; with the reduction in GST rates, consumer spending in the automobile sector is expected to go up. This can make farmers not only continue to cultivate rubber but also expand the area under natural rubber.

Natural rubber should be treated as an agricultural commodity. Its production involves classic agricultural practices and characteristics. However, since government has not treated it like such a commodity, growers have not yet gotten crop insurance and more, the report added.

Over the years, the volume of natural rubber imports has been increasing. The import duty on these are at a minimum. This leads to price fluctuations of domestically produced natural rubber, the report stated.