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26. April 2006

INDIA: Farmers to benefit from runaway rubber price

Source: Daily "The Hindu Business Line", New Delhi; 26 Apr 2006

Kottayam , April 25
Reacting to the news that natural rubber has crossed
the historical mark of $2 a kg, Mr Sajen Peter,
Chairman, Rubber Board, said that growers,
particularly a million small farmers, have every
reason for jubilation.

"When Dr Hidde P. Smit Secretary General,
International Rubber Study Group (IRSG), stated a year
ago that the price of natural rubber would go up to $2
a kg in the near future, many of us laughed it away,
but now has come true," he said.

Uptrend may persist

Studies by international agencies indicate that the
prices are likely to continue to be high for a few
more years as consumption outgrows production
globally. Hence, in the contest of a booming economy
the grower can be rest assured that a crash in price
is most unlikely. Mr Sajen Peter said this was an
opportunity, which the Indian rubber farmer could
utilise to his advantage for better prospects in
future.

Plea to growers

Mr Sajen Peter urged rubber farmers, particularly in
the traditional areas to set apart Re 1 a kg for
strengthening their own RPSs (Rubber Producer
Societies) and group processing activities to face the
challenges in improving productivity further through
scientific tapping and meeting quality standards in
processing.

(Syed Rashid Ali, Karachi, Pakistan)

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