Citation

Nambiar RS, Balasubramanian P. International Journal of Applied Business and Economic Research 2016; 14(14): 1163-1178.

Copyright

(Copyright © 2016)

DOI

unavailable

PMID

unavailable

Abstract

Around two lakh farmers in Kerala cultivate rubber. Among them 90% of the rubber growers are small and marginal farmers. They cultivate rubber in small holdings ranging from 10 Cent to 1 Hectares of land. It is also a significant that around one lakh traders are related with the rubber trading sector. More over a large number of workers are depended on rubber cultivation as tappers and manual labors. Hence one third of the population in Kerala directly depends upon the rubber cultivation. The rubber price during the last two years falls steeply. In 2011 the natural rubber price wasRs. 248 per kg and it fell drastically during the subsequent years and came down to Rs. 80 per kg and the trend still persists. Such an alarming situation may cause even the suicide of the rubber growers in Kerala in the absence of any ray of hope. The study basically attempts to study and analyze the fundamental factors that influence the price of Natural rubber in India. The study was done exclusively based on secondary data. The data were analyzed using graph, correlation and multiple regressions. Relationship between domestic price and international price was analyzed using Nominal Protection Coefficient. Based on the secondary objective to study the impact of fall in rubber prices with reference to farmers in Kottayam district and to study the socio economic profile of the farmers in Kottayam district, the data was collected by conducting direct interview scheduled through questionnaire with the farmers in Kottayam district. The living conditions of rubber cultivators are poor. Fall in rubber prices have affected the livelihood of farmers who depend only on rubber cultivation. Many of them have taken agricultural loans from banks or other private financing companies to meet the expenses of rubber cultivation. Without a minimum profitable price and support from the government and rubber board, it will be difficult for rubber growers to continue cultivation.

Language: en

Keywords

International rubber price; Nominal Protection coefficient; Rubber price