The government has approved the scheme for sustainable and inclusive development of natural rubber sector in India from FY 2023-24 to FY 2027-28. With a total outlay of ₹14,919 crore, it aims to improve production, productivity, processing, marketing, quality and sustainability across the natural rubber value chain.
Key Features
- Duration: 5 years (2023-24 to 2027-28)
- Total outlay: ₹14,919 crore
- Key components: planting material production, new planting & replanting, processing infrastructure, marketing promotion, skill development
Strategic Objectives
- Increase area under cultivation to 8.93 lakh hectares by 2026-27 from existing 8.13 lakh hectares
- Raise production to 15 lakh MT by 2026-27
- Enhance productivity from current 1793 kg per hectare to 2500 kg/hectare
- Increase value addition and indigenous consumption
Natural Rubber Sector Overview
- 2nd largest producer and consumer of natural rubber (NR) globally
- 85% of demand met through domestic output
- Kerala, Tamil Nadu, Karnataka, NE states – major producers
- 70% NR used in tyre industry, rest in medical gloves, aeronautics parts etc.
Key Challenges Faced by the Sector
- Declining NR productivity and quality issues
- High incidence of leaf blight and abnormal leaf fall disease
- Fluctuations in international NR prices
- Skill shortage across value chain segments
- Low domestic consumption vs production
- Lack of improved seed variety usage
Components and Action Plan
Planting Material Production
- Boost availability certified, SDL-80, mass vegetative NR planting stocks
- Rejuvenate existing uneconomical plantations with higher yielding seedlings
- Promote agroforestry based rubber plantations
New Planting & Replanting
- Increase area under high yielding clones to 40%
- Incentivize planting in traditional areas and NE region
- Adopt precision planting for efficiency
Processing Infrastructure
- Modernize cup lump manufacturing units for higher recovery
- Establish mobile application based traders network
- Promote solar energy utilization & reduce carbon footprint
Marketing Promotion
- Strengthen market information channels like growth trends, pricing data
- Encourage direct farmer-industry linkages through buyer-seller meets
- Validate claims related to import quality through testing labs
Skill Development
- Setting up Centres of Excellence on NR processing technology
- Capacity building for tappers and growers on latest cultivation practices
Expected Outcomes
- Reduce import dependency to 15% by 2026-27
- Additional employment generation for 70,000 people
- 93 lakh hectares covered under new planting and replanting
- Carbon sequestration by 15 lakh tonnes through agroforestry promotion
Recent Policy Developments
- Inclusion of natural rubber in Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to enhance export competitiveness
- Approval of North East Regional Rubber Production Incentive scheme for new planting and replanting
- Allocation of ₹100 crore in union budget 2024-25 for rubber sector development
- Reduction in import duties on critical raw materials for rubber products announced in 2024 budget
- Karnataka state policy aims to establish 40,000 hectares additional rubber plantations by 2025
Production and Processing Incentives
- Subsidy up to 25% of the cost for adopting rain-guarding technologies
- Capital subsidy for new integrated processing facilities with tapping to high quality latex conversion
- Electricity tariff subsidy for rubber processing MSME units in Kerala
- Freight subsidy for transportation of raw rubber from NE to consumption centers
- Subsidized rate irrigation equipment supplied in traditional rubber areas
- Subsidy for adopting greenhouse technologies for advanced nurseries
Key Statistical Overview
| Parameter | Base Year 2022-23 | Target 2026-27 |
| Area under cultivation (lakh hectares) | 8.13 | 8.93 |
| Production (lakh MT) | 7.76 | 15 |
| Productivity (kg per hectare) | 1793 | 2500 |
| Share of HTS* | 25% | 40% |
| Import dependency (%) † | 27% | 15% |
The scheme provides a focused strategy and substantial financial outlay to revitalize the natural rubber sector through solutions aligned to key challenges. The successful implementation can significantly enhance India’s domestic output, self-sufficiency, product quality, sustainability and global competitiveness in this sector.
