India — home to more than 130,000 rubber growers, with Kerala accounting for the majority of output — produced 839,000 tons of natural rubber in 2023. However, domestic consumption reached 1.35 million tons, creating a supply deficit that has led to increased imports from Vietnam, Malaysia, and other Southeast Asian countries.
23% Budget Increase for Rubber Sector Development (2024–2026)
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To strengthen the sector, the Government of India has announced a 23% increase in funding for the Natural Rubber Development Program for the next two years (2024–2026) — from ₹576.41 crore to ₹708.69 crore.
This expanded budget will support activities such as rubber cultivation, planting material production, yield enhancement, formation of rubber producer societies, as well as research and training initiatives under the Rubber Board of India.
Expansion and Support for Growers
In traditional rubber-growing regions — including Kerala, Karnataka, and Tamil Nadu — the program will cover 12,000 hectares of new plantations.
According to an official, the government currently has no plans to reduce import duties on natural rubber, as the price gap between domestic and international markets remains significant.
The financial assistance rate has been raised to ₹40,000 per hectare, up from ₹25,000 previously, helping farmers offset rising production costs and providing stronger incentives for replanting and expansion.
Focus on Non-Traditional Regions and Research
The initiative also targets non-traditional states such as Andhra Pradesh, Odisha, and the Northeastern region, where 3,752 hectares will be brought under new rubber cultivation between 2024 and 2026.
An additional allocation has been made to fund rubber research over the same period.
According to the official, the research will focus on developing high-yielding and climate-resilient rubber clones, adaptable to different agro-climatic zones across India — supporting the government’s long-term plan to expand cultivation into new regions and enhance sustainability.
Strengthening Domestic Supply and Reducing Import Dependence
Industry analysts view this initiative as a strategic move to reduce India’s dependence on imported rubber, strengthen domestic supply chains, and stabilize raw material availability for the automotive and manufacturing sectors.
By investing in both traditional and emerging regions, the government aims to diversify rubber production, support smallholders, and build a more resilient rubber ecosystem capable of meeting India’s growing industrial demand.