IndianAgri
policyIA · 2026-07-21

Kerala Raises Natural Rubber Support Price by ₹50 to ₹250 per kg Under RPIS

The Kerala government has hiked the Rubber Production Incentive Scheme support price from ₹200 to ₹250 per kg, effective for bills from July 3, 2026, fulfilling a Budget commitment to ease mounting cultivation costs.

IndianAgri Desk2 min read
₹250/kg
Revised RPIS support price for natural rubber
₹50/kg
Quantum of hike in rubber support price
₹200/kg
Previous RPIS support price for natural rubber
July 3, 2026
Effective date for the revised support price

The short answer

Kerala has raised the natural rubber support price by ₹50 per kg — from ₹200 to ₹250 — under the Rubber Production Incentive Scheme. The revision, announced by the Chief Minister's Office on July 20, 2026, applies to bills raised from July 3, 2026. The move delivers on a Budget promise made by Chief Minister V D Satheesan in response to sustained demands from rubber farmers and producers' organisations over rising cultivation expenses.

The Decision

Kerala Fulfils Budget Pledge with ₹50 Rubber Price Hike

The Kerala government on Monday officially raised the support price for natural rubber under the Rubber Production Incentive Scheme (RPIS) from ₹200 to ₹250 per kg — a ₹50 increase announced through the Chief Minister's Office. The revision is effective for bills raised from July 3, 2026, and directly fulfils a commitment made by Chief Minister V D Satheesan during the state Budget. The CMO statement confirmed that the hike was formalised on July 20, 2026, bringing closure to a demand that had been building among farming communities across Kerala's rubber-growing regions.

The Pressure

Rising Cultivation Costs Drove Growers and Bodies to Demand Action

The hike did not emerge in a vacuum. Rubber farmers, producers' organisations, and elected representatives had been pressing the state government for an upward revision, citing a sharp escalation in cultivation expenses that was eroding farm-level profitability. According to the CMO statement, Chief Minister Satheesan himself acknowledged the need to protect rubber growers from rising production costs when he announced the revision in the Budget. The sustained advocacy from grower groups ultimately pushed the government to act, underscoring how organised farmer voices can shape price policy in commodity-sensitive states like Kerala.

What It Means

A 25% Jump in Floor Price — What Farmers Stand to Gain

At face value, moving the support price from ₹200 to ₹250 per kg represents a 25% increase in the floor price available to RPIS-enrolled rubber growers. For farmers whose realised market prices fall below the support level, the scheme bridges the gap — meaning the effective per-kg relief is now higher by ₹50 compared to the previous benchmark. The July 3, 2026 effective date ensures that farmers do not lose out on the benefit for the early part of the tapping season. Rubber producers' organisations and public representatives who had been demanding the hike are expected to view this as a meaningful, if incremental, step toward financial stability for the sector.

Why it matters

With input costs squeezing margins across Kerala's rubber smallholder belt, a 25% jump in the support price offers immediate cash-flow relief to growers who sell under the RPIS. For agri-businesses and traders, the revised floor signals the state's intent to keep domestic rubber supply competitive. Policymakers and industry bodies should watch whether the higher support price translates into greater farmer participation in the scheme and whether it prompts comparable action at the central level.

Frequently asked

What is the new support price for natural rubber in Kerala?
The Kerala government has raised the support price under the Rubber Production Incentive Scheme (RPIS) from ₹200 to ₹250 per kg, an increase of ₹50 per kg.
From when is the revised rubber support price applicable?
The enhanced support price is applicable to bills raised from July 3, 2026, as confirmed by the Chief Minister's Office on July 20, 2026.
Why did Kerala increase the rubber support price?
The hike was driven by a sharp rise in cultivation costs. Rubber farmers, producers' organisations, and public representatives had been demanding an increase, and Chief Minister V D Satheesan had announced the revision in the state Budget citing the need to support growers amid rising production expenses.
Under which scheme is the Kerala rubber support price provided?
The support price is provided under the Rubber Production Incentive Scheme (RPIS), which bridges the gap between the market price and the government-set support price for enrolled rubber farmers.
Source

This report summarises and analyses coverage from The Hindu BusinessLine — Agri Business. The analysis and India context are IndianAgri's own.

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