Tea, Coffee, Rubber and Spices
Natural Rubber and Kerala's Growers
How natural rubber production centres on Kerala smallholders, why India imports rubber for tyre makers, and the tension between growers and industry.
Natural rubber comes from the sap (latex) of rubber trees.
Kerala’s dominance
Kerala has traditionally produced the largest share of India’s natural rubber, mainly from small growers with a few hectares.
New regions
Rubber planting is expanding in the Northeast, especially Tripura, with support from the Rubber Board and tyre companies.
Demand
Tyre makers use most of India’s natural rubber. India’s consumption exceeds its production, so it imports rubber from Southeast Asia.
The tension
- Growers want import duties to keep domestic prices high.
- Tyre makers want cheaper imports.
- Government policy balances these interests.
Price problems
- Natural rubber prices follow global markets and crude oil (since synthetic rubber is made from oil).
- When prices fall, growers stop tapping trees because it’s not worth the labour.
Kerala’s price support
Kerala has run schemes guaranteeing growers a minimum price, paying the difference when market prices fall below a set level.
When rubber prices fall below the cost of tapping, a Kerala grower leaves his trees untapped for months, waiting for prices to recover.
India's consumption exceeds production, so it imports rubber.
- Kerala smallholders have produced most of India's natural rubber.
- Rubber is expanding in the Northeast.
- Tyre makers use most rubber; India imports to meet demand.
- Growers and tyre makers disagree over import duties.
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