The Kerala government issued an order raising the support price of rubber to ₹250 per kg from ₹200 per kg, providing relief to farmers grappling with rising production costs. The revised rate is applicable to bills submitted since July 3.

The Finance Department issued the order following a Budget announcement by Chief Minister V D Satheesan last month. In his revised Budget for 2026-27, Satheesan had said the support price under the Rubber Production Incentive Scheme would be increased to ₹250 per kg to support the state’s rubber growers.

The government said the hike was prompted by a sharp rise in production costs. Rubber farmers, producers’ organisations and public representatives had repeatedly urged the government to raise the support price, arguing that the existing rate of ₹200 per kg was no longer adequate.

The Rubber Production Incentive Scheme was introduced with a support price of ₹150 per kg before being revised to ₹200 per kg through a subsequent government order. The latest revision marks the second increase under the scheme.

The move also fulfils a key promise made by the ruling United Democratic Front (UDF) ahead of this year’s Assembly elections. In its election manifesto, the front had pledged to raise the minimum support price of rubber.