Govt. to revise existing subsidy payment structure for rubber production

With a view to further incentivise local natural rubber production, the Cabinet of Ministers this week decided to revise the existing subsidy payment structure on rubber re-cultivation and new cultivation given to farmers, shortening the payment cycles. 

Cabinet Co-Spokeperson and the Minister of Plantation Ramesh Pathirana on Monday sought the approval of the Cabinet of Ministers to provide the subsides to rubber plantations in five installments instead of existing seven installments and in addition to provide an incentive of Rs.14,000 per hectare for cultivations showing rubber plants up to 50cm growth within five years of planting.

“Under the new structure, 70 percent of the subsidy will be given within the first two years,” he said.

The move is expected to encourage rubber cultivators as it is expected to overcome the shortcomings in the methodology currently in use.

Under the existing subsidy programme, Rs.350,000 per hectare is paid for rubber re-cultivations and Rs.300,000 per hectare for new rubber cultivations in eight installments.
The natural rubber production this year is expected to increase to 83,000 tonnes from 

75,000 tonnes recorded in 2020 while the natural rubber consumption is expected to rise to 122,000 tonnes this year from 111,000 tonnes recorded in 2020.