A rubber replanting subsidy for all cultivators is doubled to Rs. 100,000 a hectare.

All rubber cultivators, from smallholders to plantation companies can get a Rs.
100,000 subsidy per hectare for replanting, from a recently set up rubber cess fund. All rubber cultivators, from smallholders to plantation companies can get a Rs.100,000 subsidy per hectare for replanting, from a recently set up rubber cess fund.

A Rs. 49,000 per hectare subsidy was previously available to smallholders to encourage replanting, with about three percent of any given rubber land, generally replanted each year.

With increased cess funds, the subsidy has been doubled and its scope expanded to include plantation companies that account for 65 percent of total rubber output.

“Now we will be giving Rs 100,000 a hectare for all rubber planters to do replanting,” Minister of Plantation Industries, Anura Priyadharshana Yapa told reporters on Tuesday.

At the moment, the cess is fed through a five percent charge on the CIF (Cost Insurance Freight) value of imported rubber goods and Rs 4.00 from a kilo of raw rubber exports.

The charges, which kicked in last week, is expected to bring in Rs. 474 mn each year, most of which – Rs. 450 mn – will go into capital assistance for replanting.

The average cost of replanting a hectare of rubber plantation, is in the region of Rs.