Kerala government demands Rs 500-crore Central aid for rubber price stability fund

The state government has asked the Centre to reclassify rubber as an agricultural product to enhance the import duty on it under the ASEAN agreement.

THIRUVANANTHAPURAM: The state government has asked the Centre to reclassify rubber as an agricultural product to enhance the import duty on it under the ASEAN agreement, for assisting in checking the price fall of the commodity. It has also asked the Centre to provide Rs 500 crore as assistance to offset the financial burden the state is facing due to the direct benefit transfer (DBT) assistance it is extending to rubber farmers from its price stability fund.

In its memorandum to the Director of Agriculture Marketing, the state government said since the ASEAN agreement had the provision to approve rubber as an agricultural product, the Centre should reclassify it.
“Kerala is the largest producer of rubber in the country. As rubber is classified as a cash crop and earns the maximum amount of foreign exchange, the price drop of rubber is not only a setback to farmers but is also a huge loss to the country,” the memorandum said.

The government had implemented the price stability fund to ensure rubber farmers get a minimum Rs150 per kg. “However, DBT assistance is burdening the state which has to find Rs 500 crore for the same in 2017-18. In view of the situation, the Centre should assist by providing the fund,” the memorandum said 
The government the other day had asked MPs from Kerala to pressurise the Centre into taking steps for checking the fall in rubber prices and providing Central assistance to rubber farmers.

Inclusion in NMOOP-1 sought
The Agriculture Department has also sought the state’s inclusion in the National Mission on Oilseeds and Palm (NMOOP) Mini Mission-I (for oilseeds) owing to the fact sesame and groundnut cultivation in Onattukara and Palakkad, respectively, were on a fast decline. Currently, NMOOP Mini Mission-II (for oil palm) is being implemented in the state.

Other assistance
The state is also seeking more Central funds for expanding paddy cultivation from 1.98 lakh hectares to 3 lakh hectares during the 13th Five-Year Plan period. In this, the government has demanded the inclusion of Alappuzha and Thrissur in the project along with Palakkad.The state has also demanded more fund allocation for including pulses cultivation under the National Food Security Mission and has asked the crops division of the Agriculture Ministry to provide additional assistance of `30 crore for preparing a databank of paddy fields and paddy seeds.

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