Decline in NR Prices and Adoption of Agro-Management Practices in Smallholdings in India: Some Observations

The period since mid-90s has been unique in the case of natural rubber (NR) in India as it experienced severe crisis characterised by sharp increases in NR prices during 1995-96 followed by a steep decline thereafter. The crisis in NR prices poses severe constraints on the viability and sustenance of rubber cultivation as well as adverse effects on the adoption of improved agro-management practices by the small growers in India. In this backdrop, an attempt has been made to examine the immediate responses of the small rubber growers in Kerala (which constitutes the dominant rubber-growing region in India) towards the decline in rubber prices. The important agro-management practices considered were fertiliser application, spraying, use of rainguards, labour use, soil testing, plant protection measures, growers' sales preference, etc. The study showed that there was a perceptible decline in the adoption of the important cultural practices considered, including stagnancy in tapping wages. Since the NR prices still continue to be at lower levels, the adverse effects on the adoption of agro-management practices would be much more serious in the long run. Hence, any policy level intervention by the government warrants thorough empirical investigation into the magnitude and extent of decline in production, productivity, loss of income, employment and earnings at various asset levels of the small growers as well as labourers to further confirm the initial findings of the study.