Rubber growers in Karnataka are incurring a loss of Rs. 68.55 per kg when compared to the production cost and market price of the produce, according to Karnataka State Rubber Belegarara Hitarakshana Vedike, Ujire.

A report 'Natural Rubber Economy in Karnataka at the Cross Roads' prepared by economist Vigneshwara Varmudy for the Vedike said that the cost of cultivation of natural rubber stood at Rs. 258.55 kg, while the average market price of rubber (RSS-4 Kottayam) stood at Rs. 190 per kg. Hence, the cultivation of rubber now is not viable. The State has about 50,000 rubber growers across Dakshina Kannada, Udupi, Kodagu, Chikkamagaluru, Shivamogga, and Uttara Kannada districts, with Dakshina Kannada leading in production. Of these growers, 95% are small and medium farmers and the remaining 5% are large scale growers. Rubber cultivation began in the State in 1961 when the forest department first planted it in Sullia taluk, the report said.

The Vedike said that unpredictable and adverse weather conditions, such as heavy rains, reduce the number of days available for tapping latex. This is compounded by increased pest and disease outbreaks in its cultivation, which reduces yield and overall output. Declining yield from the progressively ageing rubber holdings has thrust the rubber plantations into a major crisis situation, it said. The report said that the volume of imports of natural rubber has been increasing over the years. However, the import duty on these is at a minimum. This has led to price fluctuations of domestically produced natural rubber.