Mangaluru: The govt must officially recognise rubber as a horticulture crop so that thousands of growers, who have long been denied support, will get essential govt scheme benefits, said Vigneshwara Varmudy, retired professor of economics. He was delivering the keynote address at the Rubber Growers Convention held in Ujire on Saturday. Varmudy said that the challenges Karnataka’s rubber growers are facing have reached a critical stage.While prices remain unstable, production costs continue to rise. The unchecked import of natural and compounded rubber under various international trade agreements has severely damaged the domestic market. Low or zero duty agreements with ASEAN, SAARC, and other free trade partners lead to the entry of large quantities of rubber into India. This affects local growers significantly, he said.India imported 3.8 lakh tonnes of natural rubber and 1.1 lakh tonnes of compounded rubber from ASEAN countries in 2023–24. During the April–Nov period of 2024–25, imports still remained high at 3 lakh tonnes of natural rubber and 1 lakh tonnes of compounded rubber, he said, adding that 73% of India’s rubber imports are from ASEAN and SAARC countries. While natural rubber attracts a 25% duty, and latex up to 70%, compounded rubber often comes in at 0–5% duty, he pointed out, adding that this leads to price depression in the Indian market.“Since the production costs in ASEAN countries are lower than in India, traders prefer cheaper imports, leaving local growers unable to compete. Hence, there is a need for the govt to regulate imports, impose appropriate duties on compounded rubber, restrict low-tariff inflows, prevent stockpiling by importers, and reassess free trade agreements that compromise domestic interests,” he said.Demanding a high-level committee to study and protect Karnataka’s rubber sector, Varmudy said that the govt also must introduce a minimum support price, enhanced subsidies, crop insurance, and a price stabilisation fund. The rubber cultivation in Karnataka could face total collapse in case the govt does not intervene, he warned.
