Finance Update

Rubber Board: Rubber stakeholders plead for additional fund to Rubber Board

Kochi: Various stakeholders in the

rubber

sector have written to commerce minister

Suresh Prabhu

to grant a minimum additional fund of Rs 50 crore to

Rubber Board

immediately to conduct its activities as the annual outlay for the board has been coming down in the last few years.

They said the replanting subsidy arrears worth Rs 25 crore have been processed but could not be disbursed due to lack of funds. The small growers comprising 90% of the total growers have been adversely affected by the crisis.

The communication also points out that the board does not have enough money to pay wages and other employee benefits this month unless a tranche of funds is released immediately.

The approved outlay as per plan for the period from 2016-17 to 2019-20 was 951.45 crore, but the actual allotment was Rs 675.97 crore with a deficit of Rs 275.48 crore, the stakeholders said.

The stakeholders represented Indian Rubber Growers Association, The United Planters’Association of Southern India, Association of Latex Processors of Inida, Indian Rubber Dealers Federation and Automotive Tyre Manufacturers Association.

Source

Prakash Poojary
Business Analyst

Leave a Reply