Thiruvananthapuram: The Kerala government has announced a major relief package for farmers in the 2026-27 State Budget by increasing the support price of natural rubber from ₹200 to ₹250 per kilogram. The decision was announced by Chief Minister and Finance Minister V. D. Satheesan while presenting the first Budget of the UDF government.
The ₹50 increase in the support price is expected to provide significant relief to thousands of rubber farmers across Kerala, particularly in major rubber-producing districts such as Kottayam, Pathanamthitta, Idukki and Ernakulam. The government said the move aims to protect farmers from market fluctuations and improve income stability in the plantation sector.
Rubber cultivation remains one of Kerala’s most important agricultural activities, supporting a large number of small and medium-scale farmers. Industry representatives have long demanded a higher support price, citing rising production costs and volatility in global rubber markets.
In addition to supporting rubber growers, the Budget also announced measures to strengthen the paddy sector. The government said it would modernize and improve paddy storage facilities across the state to reduce post-harvest losses and ensure better preservation of harvested grain.
Officials noted that inadequate storage infrastructure often leads to wastage and quality deterioration, affecting farmer incomes. The proposed modernization programme is expected to improve procurement efficiency, enhance food security and support Kerala’s paddy cultivation sector.
The twin announcements are part of the UDF government’s broader strategy to revitalize agriculture, increase farmer incomes and strengthen rural livelihoods. Alongside support for rubber and paddy farmers, the Budget also includes initiatives for dairy development, traditional industries and agricultural value-addition.
The government stated that agriculture will remain a key focus area in its development agenda, with increased emphasis on sustainable farming, market support and infrastructure improvements aimed at making farming more profitable and resilient.
