The Kerala Government has officially increased the Minimum Support Price (MSP) for natural rubber from Rs.200 to Rs.250 per kg under the Rubber Production Incentive Scheme, providing significant relief to rubber growers facing rising cultivation and production costs. The revised MSP, announced in the State Budget and approved by the Finance Department, will be applicable to rubber sold through bills dated 3 July 2026 onwards. The decision follows sustained demands from farmer organizations and rubber producer groups seeking better price support amid escalating input costs.

The enhanced MSP is expected to improve the income security of small and marginal rubber growers while encouraging continued cultivation of natural rubber in Kerala, India's leading rubber-producing state. Industry stakeholders believe the move will help stabilize domestic production, strengthen farmer confidence and support the long-term sustainability of the natural rubber sector. However, experts also note that maintaining a balance between farmer welfare and the raw material costs faced by tyre and rubber product manufacturers will remain important for the overall health of the industry.