Input Delivery, Processing and Marketing of Natural Rubber: The Role of Producers’ Cooperatives in Kerala

Abstract

The Indian rubber plantation sector is dominated by small holdings, which account for almost 93 per cent of the total rubber production in the country. Small rubber growers suffer from problems like low productivity, poor quality of processing and weak marketing system. The prevalence of smallholdings makes the sector vulnerable to fluctuations in price, exploitation by middlemen, etc. To overcome the problem of small rubber growers, the formation of cooperatives called Rubber Producers’ Societies (RPSs) was suggested. The present study has assessed the role of RPSs in providing services for input delivery, processing and marketing of natural rubber in Kerala. The study has revealed that RPS members have a lower cost of production and better price realization for their product compared to non-members. Group processing and community smoke house facility help in production of good quality rubber sheets. Key services provided by RPSs have been identified using factor analysis technique under five major categories, viz. marketing, financial, efficiency, infrastructural and social factors.