My few colleagues and relatives who owns rubber
plantation have been heard as saying that rate of natural rubber has come down
to a lowest level in recent times. Some of them even doubting in very continuance
of the activities in the rubber plantation due to low rubber price and higher
recurring expenses in maintaining the plantation and producing the marketable
natural rubber products.
Although I did not give much importance until one of
my friend’s narration in regard to the grim condition of the natural rubber
market in the locality especially in the rubber growing areas of Tripura. Some
non-reliable sources even claimed that few large plantation owners who have
stock piled the natural rubber sheets worths to lakhs of rupees still could not
offload that stock to the market due to sliding price of natural rubber.
In recent times, rate of natural rubber (rubber
sheet) in the local market has come down to Rs.100.00 to Rs.110.00 per kilogram
or even less than Rs.100.00 in some areas. Some rubber growers even fear that
the existing rate may further slide down in future, and in that case sustaining
of rubber plantation will become a burdensome for the plantation owners.
It is said that the local market rate of natural
rubber depends on the national markets, and movement in national market also
depends on the international markets. The
prevailing market condition so far as natural rubber is concerned is very volatile;
rather it is deteriorating in every passing day.
And, volatile natural rubber price in the local as
well as national market is causing the concern to the rubber plantation owners
of all states or as the case may be. There has been constant news story on the
plight of rubber growers due to sliding natural rubber price. It is learnt that
present market condition is even forcing to some rubber growers to temporarily
stop tapping of latex to evade the market glut and those who continues with suffers the loss due to low prices of natural
rubber.
Some of the rubber growers have even expressed that
they sometimes finds no buyers for their natural rubber let alone the better
price. It is also heard as saying that problem is more prominent to the rubber
growers who have just started tapping the rubber tree. Latex production in the
beginning stage of tapping that is within the period of 7(seven) to 10(ten) years
of tapping is said to be yielding less than the potential yield therefore
mismatch in return and cost of production of marketable natural rubber sheets.
The present market onslaught has made helpless to
many rubber growers of the state. Many rubber growers are now remembering the
sweet memories of good old days when they sold their products i.e. natural
rubber in almost double the existing rate in the local market. It is indeed
right that during the year 2011, rubber growers had earned good profit from their
plantation as rate of per kilogram of natural rubber in the month of May, 2011
in the grade of RSS-4 and RSS-5 were Rs.234.00 and 232.00 respectively.
Whereas, present price of natural rubber (as on
05-09-2014) as per information indicated in the website of the Rubber Board of
India were Rs. 126.50 and Rs.122.00 per kilogram in the grade of RSS-4 and
RSS-5 respectively. And, the price indeed is very low compare to buoyant rate that
had been recorded during the year 2011 particularly in the month of May, 2011 which
was around 232.00 to 234.00 per kilogram for RSS-5 and RSS-4 grades of natural
rubber respectively.
Rate of natural rubber as on 05-09-2014(Kottayam)
Sl.No
|
Grade
|
Unit
|
Rate
|
1
|
RSS-4
|
1.00 Kilogram
|
126.50
|
2
|
RSS-5
|
1.00 Kilogram
|
122.00
|
3
|
ISNR-20
|
1.00 Kilogram
|
106.50
|
4
|
Latex(60% DRC)
|
1.00 litre
|
89.45
|
Whereas, rate of natural rubber prior to 3(three)
years on all grades were almost double the rates that have been seen in recent
times. Let us see the rate of natural rubber that has been recorded during the
month of May, 2011.
Rate of natural rubber as on May, 2, 2011(Kottayam)
Sl.No
|
Grade
|
Unit
|
Rate
|
1
|
RSS-4
|
1.00 Kilogram
|
234.50
|
2
|
RSS-5
|
1.00 Kilogram
|
232.50
|
3
|
ISNR-20
|
1.00 Kilogram
|
224.50
|
4
|
Latex(60% DRC)
|
1.00 litre
|
144.15
|
On the prevailing market rate, rubber growers are at
great loss: they are in fact losing a huge money compare to year 2011. This is
questioning to some small rubber growers in sustaining with the production activities
by employing a rubber taper and others who take a considerable sum on monthly
basis, in addition, there are some other recurring expenses that comes on the
way from tapping of latex to the marketable rubber sheets or liquid latex.
When we compare the income of the 2(two) periods (as
mentioned above), we will be able to see exactly how much a rubber grower is
losing in the prevailing market condition , details given below:-
Income from 1(one) ha rubber plantation during
May2011
Sl.No
|
Particulars
|
Unit
|
Rate
|
Total
|
1
|
2
|
3
|
4
|
5
|
1
|
Rubber
sheet production per hectare
|
1800 to 1900 Kilograms
|
Rs.234.50
(RSS-4)
|
Rs.422100.00 to Rs.445550.00
|
2
|
Taper
|
10 months
|
6000.00 per month
|
Rs.60000.00
|
3
|
Fee
for sheet making
|
Rs.2.00 per sheet
|
4000 to 4222
sheets
|
Rs.8000.00 to Rs.8444.00
|
4
|
Drying
of rubber sheets etc
|
Rs.10000.00
|
Rs.10000.00
|
|
5
|
Recurring
cost towards chemicals and others etc
|
Rs.10000.00
|
Rs.10000.00
|
|
6
|
Total
|
Rs.334100.00 to Rs.375106.00
|
Now, let us see what the income as per prevailing
market rate is:
Income from 1(one) ha rubber plantation as 05-09-2014
Sl.No
|
Particulars
|
Unit
|
Rate
|
Total
|
1
|
2
|
3
|
4
|
5
|
1
|
Rubber
sheet production per hectare
|
1800 to 1900 Kilograms
|
126.50
(RSS-4)
|
Rs.227700.00 to Rs.240350.00
|
2
|
Taper
|
10 months
|
6000.00 per month
|
60000.00
|
3
|
Fee
for sheet making
|
Rs.2.00 per sheet
|
4000 to 4222
sheets
|
Rs.8000.00 to Rs.8444.00
|
4
|
Drying
of rubber sheets etc
|
Rs.10000.00
|
Rs.10000.00
|
|
5
|
Recurring
cost towards chemicals and others etc
|
Rs.10000.00
|
Rs.10000.00
|
|
6
|
Total
|
Rs.139700.00 to Rs.151906.00
|
What is the income difference between May, 2, 2011
and September, 5, 2014?
The difference is huge and astounding; and the loss;
loss is whopping Rs.194400.00 (Rs.334100.00 – Rs.139700.00) to Rs.223200.00
(Rs.375106.00 – Rs.151906.00) per hectare of productive rubber plantation.
If it is the income difference of now and then; then
it is quite grim and serious, and serious to analyze and find out the better
path for decreasing the widening gap income difference of now and then.
But then what is the position of rubber growers in
comparison to others involve in agriculture profession?
N.B: This
content may not be used as reference; all rates or currency etc are indicated
in INR. Rate of natural for the month May,2,2011 and September,5,2014 have been collected from the website of
Rubber Board of India, and I give due credit to the source