The price of natural rubber, which soared with the upswing in crude prices, has melted down with gloomier global signals. It?s fallen from Rs 120 a kg to below Rs 60. The collapse of auto companies, a dipping demand for tyres, a fall in the Indonesian currency and the yen?s strengthening against the dollar have also impacted world rubber prices and stunted exports. AIDS and healthcare-driven demand for condoms and gloves, dominated by the Southeast Asian rubber giants, is no solace for Indian rubber producers.
Almost 95% of them are from Kerala, God?s own country. About 75% of India?s 8.75 lakh tonnes of rubber is produced by around 10 lakh small Malayalee growers, owning less than 0.5 hectares each. They live in central Kerala, especially in the districts of Kottayam, Pathanamthitta, Idukki, Ernakulam and parts of Malabar. The swing in prices, even more elastic than rubber, makes its producers and the regional economy wobble as well.
Rubber provides livelihood not just to these 10 lakh Malayalee families but to entire villages and small towns. When rubber prices soar, all other economic activities like construction of houses or purchase of new vehicles are in full swing. Sales in jewellery shops, textile show rooms, hotels and restaurants and even in the fish markets hit their peaks. Taxi drivers, auto service staff and other daily wage earners find their supply of work become happily continuous. A feeling of plenty pervades the region.
Currently, these villages and towns are in the doldrums. This is unlike other parts of the country where the downturn is being felt mostly as an urban phenomenon. Adding to the woes is the return of people from the Gulf region, with the state government fearing the numbers to be up to five lakh.
joseph.vackayil@expressindia.com