Monday, 7 October 2013

Tripura Latex Private Limited in the Service of Rubber Growers of Tripura

            There have been reports that rubber growers do not get good market rate for their rubber products. Of course, reason for not getting the rate at par with the national level or as the case may be many. But one really felt need is a regulated system for stabilizing the rate of natural rubber in local condition.
            And, this need has been realized and taken care of by the concerned body. It is learnt that Rubber Board of India is looking into the interest of the rubber growers by forming its own subsidiaries or mechanism for safeguarding the benefit of the rubber growers in the country.
 In Tripura also followings board control bodies are working for the benefit of rubber growers of the state. The followings organizations are in fact working for the benefit of the growers in the state.
1.      Tripura Latex Private Limited
2.      Manimalayar
Tripura Latex Private limited is said to have come into existence very recently with the objective to set up latex processing plants and stabilizing the market rate of rubber product i.e. latex in the state. So far information available, latex processing plant is yet to come up in the state.
Presently, Tripura Latex Private limited is ensuring the rubber growers get good market price for sale of their rubber latex.
What they do is helping the rubber growers to sale their rubber latex to the designated firm by channeling the natural rubber latex from the rubber growers to the Firm.
Tripura Latex Private limited has devised process for collecting and channeling of rubber latex to the designated Firm.
 The process is latex is collected through different Rubber Producer Society(RPS) or Block plantation which in turn is channelized to the D.S.Group, Tripura (Dharam Pal and Satya Pal Group).
The Group in turn is offering the standard rate to the rubber growers as per terms and conditions between the Tripura Latex Private Limited and D.S.Group.
The mechanism is latex is collected in RPS (Rubber Producer Society) or Block plantation centre from the RPS (Rubber Producer Society) members or Block plantation members.
The collected latex is treated with ammonia and LATZ in standard ratio of rubber latex, ammonia and LATZ.
Tripura Latex Private Limited collects the pre-treated rubber latex from different Rubber producer Society or block plantations and said latex is supplied to the D.S. Group.
D.S.Group pays to the growers through the Tripura Latex Private Limited as per standard rate in conformity national standard as per agreement between two companies i.e. D.S.Group and Tripura Latex Private Limited.
Not let us see how the rate is determined:
Rate of rubber latex in national level on particular day: Latex-60=161.00 per kilogram.
Latex-60 means, 1(one) kilogram of natural rubber latex whose DRC is 60%.
1 Kilogram of rubber latex with 60% DRC means, 1 Kilogram of rubber latex is containing 600 grams of dry matter or dry rubber content.
            To obtain 1000 grams or 1 Kilogram of dry rubber, total 1.67 Kilograms of latex is required (1000÷600=1.67Kgs), if DRC content of the latex is 60%.
Now, if the price of Latex-60 is Rs.161.00 per Kilogram then the price of 1.67 Kilograms of rubber latex will be 268.87(Rs.161.00 X 1.67 Kg = Rs.268.87). Daily rate in national level can be accessed by anybody through SMS  or paid call.
Now, of course, in normal course, DRC of rubber latex will not be 60% unless processed and centrifuged.
In the normal course, DRC of rubber latex is said to be within 25% to 35% or to a maximum of 40%therefore, total requirement of rubber latex for getting 1 Kg of dry rubber will vary differently on DRC.
Now, if DRC of local latex is 30% then 1 Kg of rubber latex will only contain 300 grams of Dry rubber.
So, 1000 grams or 1 Kilogram of dry rubber would require = 1000÷300 = 3.33 Kilogram of rubber latex.
Means, 3.33 Kilogram rubber latex = 1 Kilogram dry rubber if DRC of the rubber latex is 30%.
Now, therefore, the rate of 3.33Kg rubber latex will be as follows:-
 = 3.33 Kilogram of latex X per Kilogram of latex
= 3.33 Kilograms X Rs.80.50 (if latex with 60% DRC=161.00 per Kilogram in Kottayam market).
= Rs.268.00
Now question may come what is the benefit that Tripura Rubber Latex Private Limited, D.S.Group and RPS get by giving this service to rubber growers?
Yes, they get something in return; Tripura Latex Private Limited Company gets commission of Rs. 3.00 per Kilogram of latex from the rubber grower who sale through the company.
 The Firm i.e. D.S.Group gets Rs. 30.00 per Kilogram of latex from the sellers i.e. rubber growers as processing fee.
And, concerned RPS gets 3.00 to 4.00 per Kilogram from the RPS member for using the service of RPS.
Let us see how much a grower is to get per Kilogram latex which is equivalent to 1 Kilogram of dry rubber (if Latex (60% DRC) is Rs. 161 per Kilogram of natural rubber latex).
When the rate of Latex (60% DRC) is Rs. 161 per Kilogram
a. To get 1 Kilogram of Dry rubber, latex requirement is 1.67Kilograms of latex
b. That means, price of 1.67 Kg of latex is 1.67 x 161 = 268.87
           c. Deduction: Processing fee (D.S.Group)     (-)       30.00
Commission (Tripura Latex)        (-)       3.00
 Commission (RPS)                    (-)       3.00                          
When the rate of Latex (30% DRC) = Rs. 80.50 per Kilogram
a. To get 1 Kilogram of Dry rubber, latex requirement is 3.33 Kilograms of latex
b. That means price of 3.33 Kg of latex is 3.33 x 80.50 = 268.00
           c. Deduction: Processing fee (D.S.Group)          (-)    30.00
Commission (Tripura Latex)              (-)      3.00
Commission (RPS)                        (-)      3.00
It is really very good price, rubber grower is getting with only little alteration in the present way of marketing of his rubber product.
It may also apparently seem that a considerable sum of money is being deducted in the whole process from the rubber growers in the name of selling the product to the company. 
Is it not loss to the growers? The fact of the matter is even after deduction of commission and processing fee of Rs. 36(3+30+3), growers is still getting lucrative rate for his product in the local condition. 
Here, rubber grower is getting Rs.232.00 after deduction all commissions or fees for 3.33 Kilograms of rubber latex with 30% DRC i.e. Rs.80.50 per Kilogram of rubber latex.
But, if rubber grower decides to sale the dry rubber sheet then he would have got Rs.170.00 (price may vary) per Kilogram of rubber latex which is quite low compare to what he would have got by selling the rubber latex.
And, in this case, per Kilogram of rubber latex with 30% DRC is Rs.51.00 (Rs.170.00 ÷ 3.33 Kilograms of latex) which is also quite low compare to what rubber grower would have got by selling latex.
However, what I have seen from my little experience is many rubber growers are still not aware of this service that is available in the state.
Here what is observable is; although, mechanisms are available to safe guard the interest of small rubber growers but their use is yet to reach in mass level.
This is because all these holistic approach are yet to be known by most growers therefore, they are yet to be fully realized by the rubber growers of the state.
The reason is unawareness or apprehension (to a certain extent) of rubber growers for taking these benefits.
It may therefore be said that certain concerted efforts as mentioned below may bring positive changes in the mindset of the rubber growers’  of the state.
These efforts if successfully realized then it will not only benefit the growers’ community but also the state’s economy:-
1. An effective Rubber Producer Society
2. Awareness campaign for disseminating the new service for the benefit of rubber grower.
3. Training to the rubber growers for maintains quality parameter.
4. Bringing all non-RPS members to register with RPS
     N: B: For specific recommendation or suggestion, expert may be consulted. Reference for Rate of Latex-60% was taken in one particular day in Kottayam market which may vary now. Names like Rubber Board of India, Tripura Latex and DS Group have been taken with due care and importance.