Rubber replantation subsidy may be hiked to Rs 24,500/ha

BS reports

The Central subsidy for replanting rubber is likely to be enhanced to Rs 24,500 a hectare in the 11th Plan period against Rs 20,000 in the previous Plan.

The finance committee of the government is yet to approve the hike in subsidy and an announcement to this effect is expected soon. The subsidy, when enhanced, would work out to 25 per cent of the per hectare development cost.

Earlier, the Rubber Board had proposed a rise in the subsidy to Rs 30,000 a hectare, but the government had asked to reduce it to the lowest because of a spurt in prices in the last couple of years.

The board had also proposed to enhance the subsidy for new plants to Rs 24,500 a hectare. But, it is not likely to happen and the subsidy for new plants is set to remain at Rs 12,000 a hectare.

The government considers that the recent spurt in prices are an encouraging factor for growers and sees no justification in a steep increase in the subsidy.