The rubber industry has proposed a hefty increase in the subsidy on rubber production to Rs.1 lakh a hectare in the 12th Five-Year Plan to boost output.

“We have proposed to the government to provide a one-time subsidy of Rs.1 lakh a hectare to small farmers for a period of three years for planting rubber trees,” Indian Rubber Dealers Federation president George Valy has said.

The government is providing a subsidy of Rs.19,500 a hectare on rubber cultivation in the traditional areas (Kerala, and Kanyakumari in Tamil Nadu) and Rs.30,000 a hectare in the non-traditional areas.

The proposal emerged during a recent consultative workshop on the rubber sector, organised by the Commerce Ministry for considering the views of the domestic rubber industry for designing a rubber policy for the 12th Plan (2012-17).

The rubber producers said a hefty subsidy would help increase the rubber production in newer areas such as the Northeastern States.

The rubber industry apprehends that the demand-supply gap of natural rubber is increasing. — PTI