On Tripura Rubber

Tripura Rubber Mission- Technical Bulletin 1, 2006

A Status Report on Rubber Plantations in Tripura

Indraneel Bhowmik
Research Advisor, TRM

Introduction
Natural Rubber (NR) is obtained from the latex of the tree Hevea
Brasilliensis, a tree of Amazonian origin and thrives best in the
tropical region. NR is the most widely used elastomer in the world. It
is used as industrial raw material for almost 50,000 goods. The
demand for NR arises in all the countries and is highly correlated to
the levels of industrialisation and the standard of living. China is the
world’s largest consumer of NR followed by USA and Japan. India is
the fourth largest consumer of NR in the world. NR consumption in
the world has been growing at an average rate of 3 percent during the
period 2000-2005. However, the production of NR is limited to certain
countries owing to the requirement of specific agro-climatic
conditions. The supply of NR in the world market comes mainly from
the South East Asian countries. Thailand is the world’s largest
producer of NR followed by Indonesia and Malaysia. India, similar to
the demand sector holds the fourth rank even in the supply market.
Unlike other major producers of NR, India’s NR production caters to
the domestic market mostly. Kerala and the Kanya Kumari district of
Tamil Nadu comprise the traditional zone of NR production in India
and the history of rubber plantation dates back to the early
nineteenth century. Kerala occupies 84 percent of the total area under
rubber plantation in the country but contributes about 92 percent of
the total production (Rubber Statistics 2005, Rubber Board). In 2004-
05, India had plantations in 578000 hectares and produced 749665
tonnes of NR. But paucity of new land in the traditional zone on one
hand and increasing demand for NR following greater automation and
economic development on the other warrants exploration of new areas
for expansion of rubber plantation. Extension activities of the Rubber
Board had been in vogue since its inception but the major thrust in
expansion began mostly after 1970 and presently rubber plantation in
various dimensions stands in seventeen of the states and Union
Territories of India.
The National Bureau of Soil Survey and Land Use Planning has
identified 450000 hectares of land in the North-eastern region as
suitable for rubber plantation. Thus the non-traditional zone is the
area where lies the potential for expansion of rubber plantations to
avail higher levels of production. The survey suggests that around
100000 hectares of land in Tripura can be utilised for rubber
plantations (Bahuguna, Dr.V.K, Action Plan for Expansion of Rubber
in Tripura, 2005). The Rubber tree in Tripura was introduced by the
state forest department in 1963 in Patichhari as part of afforestation
programme. The Hevea Brasilliensis is known for its huge potential in
generating biomass and provides for a heavy canopy. However, with


those trees maturing in the early 1970s opened up a new opportunity
for the state to explore. Though rubber in Tripura had a modest
beginning, it’s potential for both the government and the people of the
state identified both economic and ecological benefits. Tripura had
29120.67 ha of rubber plantation (Bahuguna, Dr. V.K, 1995) in the
state according to Rubber Board till 31st March 2005 and has emerged
as the second largest state in terms of area under rubber plantation
since 1991(Rubber Statistics, 2005, Rubber Board)

Objectives of the study
o Identify the areas of existing rubber plantations in the state at
the sub-divisional level.
o Identify the nature of the ownership of plantations in the state
and also trace their location at the sub divisional level.
o Analyse the growth patterns of expansion of rubber plantations
and trace inter-decadal variations, if any.
o Study the impact of targets set by different agencies involve with
rubber plantation and production.
o Identify problems in expansion of rubber plantations in the
state, if any.
o Suggest ways and means for further expansion of rubber
plantation in the state.
Methodology.
o The present study has been undertaken mainly on the basis of
secondary sources except for a small sample survey at two
rubber production centres operated under the aegis of TRPC.
o The available literatures on the economy of the state and on
rubber plantations in the state have been mostly referred.
o The statistical data used in the study were collected from offices
of different agencies related to the plantation of rubber. The
Rubber Board provided the major chunk of the data. Permit
registers of the Rubber Board preserved at the three regional
offices situated at Agartala, Udaipur and Dharmanagar were the
basis for identification of the locations of the rubber plantations.
o The address quoted for the permit holder has been the basis of
identification of the district and subdivision.
o Secondary data was also collected from the Tripura Forest
Development and Plantation Corporation Ltd (TFDPC) and
Tripura Rehabilitation and Plantation Corporation (TRPC).
o The raw data was processed using standard statistical and
mathematical software namely- SPSS and MS Excel to derive
the desired form.
o A comparison between the growth rates in area under different
agencies has been made. An exponential trend equation given


by Yt = log a + t (log b) + u has been used. The measures of r2 as
well as the ‘t’ test are also considered.
o Such comparisons have helped us to understand how rubber in
Tripura has performed and its potential for future expansion.
o The maps used in the study are the standard outline maps
available in the market. Plotting of different sites has been made
with reference to the list of revenue villages provided by the
Department of Land Settlement, Govt. of Tripura.

Limitations
o The dearth of reliable statistics on tapping area is in itself a
major limitation. Lack of systematic maintenance of data has
been a constraint in computation of data.
o The major part of the study is dependent on information
provided by secondary sources, i.e., different agencies. Field
level testing and primary survey would have been more effective
in identifying the problems.
o The TTADC office could not provide relevant data, so estimation
on total area has been made, and the district and subdivision
classification of area has been done on the basis of whatever
data could be extracted.
Analysis
The Beginning
State Forest Department had introduced rubber trees in as early as
1963 in the form of trial plantations in localities like Patichhari and
Manu along with some other successive exploratory surveys.The
results of the trial plantations were found encouraging and naturally
extension of rubber plantations under government supervision had a
fillip. Being a new commercial crop hitherto unknown in Tripura
rubber was subjected to different tests from within the and outside
the society and was often being misunderstood and rejected. However,
amends were made at the earliest and the importance and the benefits
were realised. It is important to note that the variability in the agro
climatic conditions of Tripura from that of the traditional zone do not
have serious deleterious effect that would hamper the overall growth
and yield of rubber in Tripura. By 1971-72, with the commencement
of tapping and processing, Tripura was on the verge of a new age of
development.
The state government seemed to have a new opportunity in their
hands to usher in greater sources of revenue, income and welfare.
Extension of plantation began at an increasing rate but mostly in the
public sector. A rubber plantation apart from being a source of
revenue also act as an employment-generating source, a means of
resettlement of the landless and in addition fosters soil conservation.
Rubber plantations and cultivation were considered as a viable means
of economic development and the state government formed the


Tripura Forest Development and Plantation Corporation (TFDPC)
in1976-77. The corporation was entrusted with the management and
operational activity of the existing plantations under the aegis of the
state forest department. The TFDPC has under its wing more than
10000 ha of rubber plantation, spread all over the state.
The Take- Off
The potential of rubber plantations in Tripura being well identified by
the mid 1970s saw the Rubber Board set up its regional office in 1979
at Agartala. The extension activity of the Rubber Board in saw
plantations set up through private initiatives. The ongoing
industrialisation, mechanisation and economic development in the
country had warranted for new areas for rubber plantation. The
introduction of cash subsidy as an incentive for new plantations by
the Rubber Board in 1980 had seen a significant growth in new areas
under rubber all over the rubber growing regions and Tripura was no
exception. The private plantations began to increase since 1980 at a
very positive rate.
This scheme of financial subsidy has been instrumental in promoting
rubber plantations for the public sector also. Encouraged at the
success of the rehabilitation programme of the TFDPC the state
government established the Tripura Rehabilitation & Plantation
Corporation in 1983 with the specific objective of settlement of
landless tribals for reclamation of lands under jhum cultivation. TRPC
has under its aegis, 4696.75 ha of rubber plantations. The
corporation helps the tribal beneficiary in setting up the plantation
and as the trees mature, it procures the latex from them and sells the
rubber sheets in the market. The success story of TFDPC and TRPC
has encouraged private initiatives in rubber plantations within the
state.
Rubber plantations are considered to be a profitable economic
investment for people from all sections of life. Apart from full time
rubber cultivator, there are several investors in rubber plantations in
Tripura. However, the state lacks very big estates though several small
estates of corporate ownership do exist. Residents and corporate firms
originating in other states or regions of the country do have rubber-
producing farms in Tripura. Using the classification of plantations as
holdings and estates by Rubber Board on the basis of contagious area
above or below 20 ha sees a predominant majority of holdings in
Tripura.
The growth of rubber plantations in Tripura received a fillip with the
introduction of the “ Tripura Block Plantation Project” in collaboration
with the Rubber Board and the Department of Tribal Welfare; Govt. of
Tripura in 1992-93. The project was to raise rubber plantation in
1500 ha in a span of 5 years for the settlement of 1500 tribal families.
The World Bank has provided funds for this programme since 1992 in
order to promote economic settlement of the tribal Jhum cultivators
through rubber plantation.


The opening up of the economy following economic reforms in 1991
saw the Indian rubber economy integrate with the world market. The
industrial growth received a spurt in the early 1990s and triggered off
a price rise for raw NR particularly in 1994 and 1995. Several private
initiatives occurred with an expectation to reap in as much as profit
as possible. But the boom was short lived and prices for rubber
smoked sheets dipped to very low levels. However, with the
international NR sector posing a revival since 2001, there has been
renewed interest in rubber plantations particularly in the private
sector and there has been much higher growth rates of expansion of
rubber plantations in the state since 2003.
The public sector units however, continued to pursue their goals of
increasing plantation area. Rather the state government has brought
in two more agencies to implement rubber plantations- the office of
the Tripura Tribal Autonomous District Council and the office of the
Sub-divisional magistrates from 1998. Schemes for resettlement of
weaker sections of the society through rubber plantations have been
one of the major developmental programmes of the state government.
The Present Scenario
The total area under rubber plantations in Tripura is around 31000
hectares; while the tappable area as per Rubber Board estimates is
17000 hectares. The total production in the state is estimated around
17000 tonnes thus resulting in a yield rate of 1000 kgs/ha (approx).
The major agencies for rubber plantation and extension are- the
TFDPC, the TRPC, the office of the TTADC, the office of the SDM, the
Jt. RPC Rubber Board and the private sector individuals and farms.
Rubber Plantations are widely dispersed over all the four districts of
the state. The total area (provisional) under different agencies
operating in the rubber sector as on 31st March 2006 are-
Agency Total Area
(Hectares)
TFDPC 10744*
TRPC 4697^
Jt. RPC 3090**
TTADC 1521*^
SDM/SDO 541**
Private 11080**
Sector
Total 31673
Source- Computed (Rounded off)
Notes- * TFDPC office, ^ TRPC office, ** Rubber Board
*^ estimated


Share of total area under different agencies

TFDPC 34%

TRPC 15%

Jt. RPC 10%

TTADC 5%

SDM /SDO 2%

PRIVATE 34%

The largest district in terms of area under rubber plantations is the
West Tripura district followed by the South Tripura District. The North
Tripura district and the Dhalai district follow at the third and fourth
position.
Total Area Share
District
(ha) (%)
West
14244 45
Tripura
South
10503 33
Tripura
North
5134 16
Tripura
Dhalai 1792 6
Source- Computed; Notes- Figures may not add up to 100% due to rounding off
Bishalgarh subdivision is credited with the maximum area under
rubber plantations, 5127.15 ha. In the south Tripura district, the
newly formed Santirbazar subdivision has the maximum area,
3220.3 ha followed by Belonia with 1924.67 ha. Interestingly, as on
31st March 2006, Belonia was the leader, the new subdivision has
been curved out of its territory. Kailasahar sub division, 2291.72
ha, leads over others in the North Tripura district while it is
Kamalpur ranking first in the Dhalai district with 802.33 ha of
rubber plantations. Rubber plantations are found in all the
subdivisions of the state except Gandacharra in Dhalai district.
Though very surprising, it is true that none of the agencies has set


up any plantation in this remote area, bereft of much economic
development and opportunity.

The share of different Subdivisions in total area under rubber in the
state-
Kailasr Kanch Sadar Bishalgarh
7% 3% 11% 17%
Dharma
Ambasa
5%
1%
Sonamura
Ganda 0%
9%

L.T.V
Khow
2%
7%

Kamlpr Tlmura
3% 1%

Udaipur
Amarpur Belonia
Sabroom Santibazar 6%
3% 6%
7% 10%

The rank analysis of the subdivisions shows that among the top five
subdivisions, three belong to the West Tripura district, while among
the least coverage four subdivisions from the Dhalai district comes in
the bottom five.
Sub Division Total Area Rank
Sadar 3412 3
Bishalgarh 5267 1
Sonamura 2813 4
Khowai 2293 9
Teliamura 459 15
Udaipur 1831 8
Belonia 2009 7
Santibazar 3313 2
Sabroom 2352 6
Amarpur 998 12
Kamalpur 802 13
Ambasa 252 16
L.T.V 738 14
Dharmanagar 1665 10
Kailasahar 2361 5
Kanchanpur 1108 11
Gandacharra 0 17

The agency wise coverage of area under rubber plantation depicts
that TFDPC has the lead in the South Tripura and North Tripura


district, while in the West Tripura district the private sector is the
lead unit while in Dhalai district, the TRPC is the dominant agency.
AGENCIES
TFDPC TRPC JT.RPC SDO TTADC PRIVATE TOTAL
Subdivision

Sadar 429.43 344.82 610.85 18.75 215 1793.22 3412
Bishalgarh 926.03 722.31 1502.64 19.23 140 1956.94 5267
Sonamura 1027.92 96.95 169.03 27.37 1491.57 2813
Khowai 579.3 599.43 0 146.03 557 411.04 2293
Teliamura 315.72 0 0 27.72 116 459
West 3278.4 1763.51 2282.52 239.1 912 5768.12 14244
Tripura
Udaipur 79.85 94 388.59 62.99 25 1180.6 1831
Belonia 931.13 0 216.29 36.6 50 775.65 2009
Santibazar 1896.94 187.11 0 40.77 35 1153.98 3313
Sabroom 1339.68 367.02 0 92.35 80 442.71 2352
Amarpur 190.47 577.16 28.47 2.75 75 123.89 998
South 4438.07 1225.29 633.35 235.06 265 3706.83 10503
Tripura
Kamalpur 0 391.42 0 48.79 362.02 802
Ambasa 29.71 158.58 0 17.9 25 20.35 252
L.T.V 92 464.6 0 0 150 31.22 738
Gandacharra 0 0 0 0 0 0 0

Dhalai 121.75 1014.6 0 66.69 175 413.59 1792
Dharmanagar 1048 89.7 139 0 388.03 1665
Kailasahar 1216.9 272.84 0 0 69 801.98 2361
Kanchanpur 641.68 330.81 35.2 0 100 0.5 1108
North 2906.58 693.35 174.2 0 169 1190.51 4965
Tripura
TOTAL 10744.3 4696.75 3090.07 540.85 1521 11080.05 31673
Source- Computed (Areas rounded off)
TFDPC is the lead agency in rubber area in seven subdivisions-
Teliamura, Belonia, Santirbazar, Sabroom, Dharmanagar, Kailasahar
and Kanchanpur. The TRPC is the dominant agency for rubber
plantation in five subdivisions namely, Khowai, Amarpur, Kamalpur,
Ambasa and Longtrai valley. On the other hand, the private sector has
the maximum area in the subdivisions of Sadar, Bishalgarh,
Sonamura and Udaipur. In terms of total area however we find private
sector marginally ahead of the TFDPC in the state and also in terms of
coverage in the subdivisions. Since there are no plantations in the
Gandacharra subdivision it is obvious that the different agencies will
have a blank. However, there are private initiatives in all other


subdivision though the range of coverage among them varies for
various economic and non-economic factors.
An interesting observation from the above table is that though there
are more than 1000 ha of rubber plantation in the Kanchanpur
subdivision the share of the private sector is that of a microscopic
minority. Only, 0.5 ha of rubber plantation has been set up by a
private sector initiative. However, one must understand that setting
up plantations by different agencies at different subdivisions is
subject to certain constraints arising out of land availability and
identification of beneficiary.
Agency wise performance
The different agencies involved in production and extension of rubber
in Tripura have all been increasing their area under operation for
successive years. The adjacent table shows the new area brought
under rubber plantation since 1980.
TFDPC TRPC SDM/SDO PRIVATE JT.RPC TTADC TOTAL
Upto1979 1942.16 23.09 1965.25
1980 708.12 51.14 759.26
1981 718.6 135.52 854.12
1982 724.93 349.94 1074.87
1983 516.25 291.45 807.7
1984 671.87 75 223.77 970.64
1985 535.96 77.1 193.02 806.08
1986 903.99 224.9 354.32 1483.21
1987 950.8 344.7 163.85 1459.35
1988 477.37 268.9 245.87 992.14
1989 885.56 365.7 313.27 1564.53
1990 88.4 83.1 259.05 430.55
1991 131.5 30.95 240 402.45
1992 130.65 182.7 305.03 122.22 767.6
1993 123.85 123.8 321.31 267.55 836.51
1994 137.1 213.2 480.55 189.26 1020.11
1995 267.98 181.02 802.18 399.44 1650.62
1996 89.8 91.02 35.46 964.92 152.6 1333.8
1997 59.06 211.33 1037.22 256.61 165 1729.22
1998 28 62.92 58.38 711.63 449.88 741 2051.81
1999 53.5 181.65 41.25 432.07 171.17 340 1219.64
2000 140 274.4 109.34 583.27 145.69 1252.7
2001 30 375.33 37.02 514.9 402.47 75 1434.72
2002 140.65 306.99 57.48 261.49 110.2 876.81
2003 164.8 404.61 100.75 323.57 114.76 200 130808.49
2004 99.25 249.81 56.84 615.83 176.19 1197.92
2005 24.15 367.62 44.73 881.56 132.03 1450.09
TOTAL 10744 4697 541 11080 3090 1521 31673
Source- Computed (Rounded Off)


The maximum increase in area occurred in 1995, 1650.2 hectares.
However, that included contribution from all agencies. The private
sector is more driven by profit motive and the highest growth in
absolute terms occurred in 1997 for the private sectors. Incidentally,
price of RSS during 1995 and 1996 had increased to about Rs. 60.00
per kg that provided a huge profit and attracted interest from new
planters. But the consequent depression saw a declined interest from
the common people. On the other hand the state sponsored
rehabilitation programmes under the aegis of other agencies are more
part of the developmental programme and comparatively less related
to the market initiatives.
TFDPC had been the lead agency in the state for expansion of rubber
till 1989 but, subsequently, their share in the incremental change has
declined. Presently, the corporation remains the lead agency in the
South Tripura and North Tripura district. The corporation has raised
rubber plantation on commercial basis over an area of 7542.90 ha till
March 2006. Apart from this, another 2784 ha of rubber plantation
were raised for rehabilitation of the tribal jhum cultivators and
settlement of Schedule castes and other socially backward classes.
The corporation has also inherited 418.66 ha of rubber plantations
raised by the state forest department during the period 1963 to 1975.
The distribution of rubber plantations raised and maintained by
TFDPC is shown in the adjoining table
WEST SOUTH NORTH DHALAI STATE
Self Owned 9 21 13 1 44
Beneficiary 15 11 4 3 33
Inherited 2 5 1 0 8
Dept. of Hort. 1 2 0 1 4
TTADC 1 0 0 0 1
Total 28 38 18 4 90
Source-TFDPC
The first plantation under the TFDPC was initiated at Warrangbari,
near Bishramgunj in the West Tripura district in 1976. The plantation
at Warrangbari was the first model to explore the possibilities of
resettlement of landless tribal jhum cultivators through rubber
plantations. The success achieved induced the state government to
adopt rubber plantations as a viable economic activity for the tribal
populations. However, there has been no uniform trend in the growth
of new area and after 1989 the private sector has had the maximum
share in the new area except for 2002 and 2003, when TRPC had
emerged as the lead agency in the state. Such a situation was
completely led by the market reaction. The worldwide depression had
affected the Indian rubber sector also and Tripura could not be
insulated against the market fluctuations. The annual increment in
rubber plantation by the private individuals came down to levels prior


to 1994. The most significant observation during the last 10 years, i.e.
1996-2005, the public sector has taken up the extension activity
during the years of depression. The efforts at rehabilitation of land
less tribals and people from other weaker section have received thrust
under the schemes sponsored by the Department of Rural
Development and the Department of Tribal Welfare.
1200

1000

800

600

400

200

0
1

3

5

7

9

11

13

15

17

19

21

23

25
TFDPC TRPC SDM/SDO PRIVATE Jt.RPC TTADC

TRPC is actively engaged in raising rubber plantations for the
rehabilitation of the landless tribals in fourteen subdivisions.
No. of location No. of Beneficiaries
Sadar 3 277
Bishalgarh 9 563
Sonamura 3 95
Khowai 5 429
Teliamura 0 0
West Tripura 19 1364
Udaipur 4 73
Belonia 0 0
Santibazar 5 182
Sabroom 4 235
Amarpur 7 454
South Tripura 20 944
Kamalpur 3 301
Ambasa 4 122
L.T.V 7 397
Gandacharra 0 0
Dhalai 14 820
Dharmanagar 1 55
Kailasahar 4 258
Kanchanpur 5 323
North Tripura 10 636
TOTAL 63 3764
Source- TRPC


The average size of units for beneficiaries is 1.25 ha. However, there
are inter-regional variations in the farm size within the state itself. The
West and the South district shows an average farm size of 1.29 ha,
while the Dhalai district has an average farm size of 1.23 ha but the
North Tripura district has only 1.09 ha. Such variation in farm size
will obviously result in differential income. TRPC is the apex agency
for raising rubber plantation in the Dhalai district and the dominance
is exhibited by the fact that 62.76 percent of the plantations have
been raised by it. The year-wise area of rubber plantation under
occupation of different agencies in Tripura shows the declining share
of TFDPC over the years. TFDPC has been the lead agency in Tripura
from the beginning and it was only in 2005 that the private sector has
overtaken them by a small margin, 150 hectares approximately.

Agency
Year TFDPC TRPC SDM/SDOJt. RPC ADC PRIVATE TOTAL
Upto1979 1942.16 23.09 1965.25
1980 2650.28 74.23 2724.51
1981 3368.88 209.75 3578.63
1982 4093.81 559.69 4653.5
1983 4610.06 851.14 5461.2
1984 5281.93 75 1074.91 6431.84
1985 5817.89 152.1 1267.93 7237.92
1986 6721.88 377 1622.25 8721.13
1987 7672.68 721.7 1786.110180.48
1988 8150.05 990.6 2031.9711172.62
1989 9035.61 1356.3 2345.2412737.15
1990 9124.01 1439.4 2604.29 13167.7
1991 9255.51 1470.35 2844.2913570.15
1992 9386.16 1653.05 122.22 3149.3214310.75
1993 9510.01 1776.85 389.77 3470.6315147.26
1994 9647.11 1990.05 579.03 3951.1816167.37
1995 9915.09 2171.07 978.47 4753.3617817.99
1996 10004.89 2262.09 35.46 1131.07 5718.2819151.79
1997 10063.95 2473.42 35.46 1387.68 165 6755.520881.01
1998 10091.95 2536.34 93.84 1837.56 906 7467.1322932.82
1999 10145.45 2717.99 135.09 2008.73 1246 7899.224152.46
2000 10285.45 2992.39 244.43 2154.42 1246 8482.4725405.16
2001 10315.45 3367.72 281.45 2556.89 1321 8997.3726839.88
2002 10456.1 3674.71 338.93 2667.09 1321 9258.8627716.69
2003 10620.9 4079.32 439.68 2781.85 1521 9582.4329025.18
2004 10720.15 4329.13 496.52 2958.04 1521 10198.26 30223.1
2005 10744.3 4696.75 541.25 3090.07 1521 11079.8231673.19
Source- Computed


The rubber plantations raised under the Tripura Block Plantation
Project has been classified under the head of Jt. RPC. The 1st phase of
the scheme was successful in getting an extension for an additional
five years with funding from the World Bank. The growth in area
under this agency has slowed down since 2002. Presently, we find 50
places or centres having Block plantation with 36 in the West Tripura
district, 10 in the south Tripura district and 4 plantations in the
North Tripura district.
The growth of the area raised by the Sub divisional magistrates in the
last ten years of existence has increased by more than 15 times. This
agency has raised rubber plantation in 12 subdivisions of three
districts. There has been no plantation under this agency in the three
subdivisions of North Tripura district. The maximum cover raised by
this agency is 146.03 hectares in Khowai. The rubber plantations
raised by this agency also attempts to resettle poor people from the
scheduled caste category.
The growth of rubber plantation in Tripura has been varied owing to
several economic and non-economic factors. The rubber tree takes
around six to seven years to mature and naturally production begins
only after that. Therefore in the total area in the ‘n’th year should be
the tappable area in the ‘n+7’th year. In other word we say, there
should be a close similarity between the total areas under plantation
in 1990 to the tappable area of 1997. However, several factors like
longer gestation period, damage to existing plants, insurgency and
terrorism have kept the tappable area at levels below that expected.
Moreover changes at the policy levels have also played a big factor in
the growth process of the implementing agencies of rubber plantation.
It is to be remembered that rubber in Tripura is grown to serve twin
goals of economic development of the weaker section and as a
commercial crop providing a viable economic activity. It should be
noted that the agencies that raise rubber plantations as part of
rehabilitation programme of the weaker sections of the society transfer
the ownership rights to the beneficiaries as the trees mature. The
future transfer rights are restricted so that the tribals do not become
landless again. The existing land rights in the state also restrict
transfer of ownership from tribals to non-tribals. The result is
increasing cost of available land and real estates. The booming price
in the rubber market has added fuel to it. Land price has increased
manifold during the previous years. Such a scenario had an impact on
the rubber plantation sector also. There have been several cases
where the tribal owner of the land has leased out his property to non-
tribals at a premium in the South Tripura district. The expansion of
rubber plantation though did not witness growth of rubber based
industries, but rubber as a trade item has increased manifold. There
are more than 123 licensed rubber dealers and sub dealers in the
state. Of late, a rubber-based industry has come up in Sadar near
Agartala that will certainly be a boost to this sector.


Growth Profile
Tripura we know over the years have emerged as the 2nd largest state
under rubber plantation in the country and also leads among the
Northeastern states. The growth in area has been achieved by all the
agencies that raise plantations.
Table- Trend growth rate of area under rubber in Tripura
Period TFDPC TRPC SDM/SDO Jt. RPC TTADC Private Total
1980-2005 4.5 15.32* 38.40** 22.12*** 19.91*^ 16.18 8.82
1981-1990 11.95 66.09* 26.37 15.57
1991-2000 1.17 7.77 68.17** 37.38*** 89.34*^ 14.22 6.97
2001-2005 1.07 8.65 18.41 4.94 4.32 5.37 4.29
Notes- ‘*’ indicates series beginning from 1984, ‘**’ indicates series beginning from 1996 &
‘***’ indicates series beginning from 1992,’*^’ indicates series beginning from 1997
We find the linear equation Yt= a + b (t), where ‘Y’ is total area and ‘t’ is
time being the best fit to describe the growth process of area under
rubber in the state
35000
y = 1149.5x - 424.21
30000 2
R = 0.9912
25000
20000
15000
10000
5000
0
9

81

83

85

87

89

91

93

95

97

99

01

03

05
97

19

19

19

19

19

19

19

19

19

19

20

20

20
o1
pt
U

Notes- ‘blue’ – actual, ‘white’ –linear trend
The trend growth rate for area under rubber has slowed down after
the 1990s. The growth had been most impressive during the decade of
the 1980s and the least rates have been for the first five years of the
present century, 2001-2005.The high growth rates during the 1980s
has been mainly because rubber was a new crop and the availability
of virgin lands. It is to be noted that the landscape of Tripura provides
for large number of low highlands, called ‘tilla’ in local parlance, which
are otherwise not used for agriculture and are often left uncultivated
and barren. It is this section of tilla land where rubber has been
initiated. These lands would in other case be left unused and therefore
are adding value to the state GDP. The cash subsidy from Rubber
Board has also acted as an incentive for increase in area in the early
days. However, the major credit for achieving such high rates in
expansion of rubber plantation should go to the implementing
agencies for carrying out the extension activities in right earnest.


Agency Growth
The slowdown has been the maximum for TFDPC, owing to its
reduced role in the resettlement programmes of the state government.
Also added to it is the shortage of available land for TFDPC to expand
its own capacity. The slow down in the growth rate in the area under
TFDPC is well evident in the above diagram as we find a break since
1989. The logarithmic equation Y= a + b {ln (t)} is a better fit then the
linear model as the value of R2 depicts.
14000
12000
10000 R2 = 0.956
8000 2
6000 R = 0.8371
4000
2000
0
9

81

83

85

87

89

91

93

95

97

99

01

03

05
97

19

19

19

19

19

19

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20

20
t o1
Up

Notes- ‘blue’ – actual, ‘white’ – logarithmic trend & ‘green’ - linear trend.

The growth in area of plantations raised by TRPC has been following a
linear trend. The high value of R2 is in support of the statement. There
have been occasional divergence between the actual and the
estimated, but more or less they have been moving in tandem. TRPC
has been specially instituted for extension of rubber plantations and
the growth rate achieved by the corporation has naturally been higher
than the state as a whole.The trend rate of growth for the agency has
been the most during the 1980s, but such a rate is more due to the
lower base figures. However, there have been reports of damage and

5000
4000
R2 = 0.9766
3000
2000
1000
0
81

83

85

87

89

91

93

95

97

99
9
97

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comparatively less productivity in the units raised by TRPC.
Notes- ‘blue’ – actual, ‘white’ –linear trend
The most impressive growth rates have been for the area or plantation
under the Sub-divisional magistrates and under Tripura Tribal
Autonomous District Council because the total period under
consideration has been the least. But, the existing conditions of the
plantations are to be verified. The Block Rubber Plantation
programme initiated in 1992 under the financial aid of the World


Bank and technical supervision of the Rubber Board has had a
stupendous growth rate for the first period as we have seen above, but
it has slowed down in the last period under consideration. The trend
growth rate for the private sector has been impressive and has been
the highest for the entire period. The high growth rate is an indication
of the acceptance of rubber as a viable economic activity across all
areas of the state. The relative higher rate of profit of rubber as a
plantation crop has been the motivator for such an occurrence.
Economics
The income from the plantation is basically a function of price and
yield. The average price ratio of rubber in Tripura is 0.94 with respect
to the national levels. But the yield rates between our state and the
traditional region vary. The Rubber Board estimates the average yield
for Tripura to be around 1000 kgs per hectare, which is much lesser
than then the national average.
In order to find out the economic viability of rubber in Tripura a
primary survey was conducted in two centres of rubber production
operating under TRPC- I) Bangshibari and 2) Herma. Both these
centres are located in the Bishalgarh subdivision and are close to
Bishramgunj on the NH 44. A total of 30 (thirty) farmers were
interviewed on the basis of a well-structured schedule. The objective of
the schedule was to find out the present economic, social and cultural
condition of the farmers and also identify the problems, if any, that
they suffer from. The survey was done on two successive days in the
last week of August 2006. The data collected from the surveys refer to
the production levels of July 2006.
The highlights are given in the adjacent table
Respondents (Total) 30
Respondents
18
(Bangshibari)
Respondents (Herma) 12
1162
Av. Yield (Total)
kgs/ha
1086
Av. Yield (Bangshibari)
kgs/ha
1264
Av, Yield (Herma)
kgs/ha
2014
Yield (Maximum)
kgs/ha
Yield (Minimum) 301kgs/ha

Rubber plantations have two distinct stages in its economic life- the
immature phase and the mature phase. Production is the parameter
used for this distinction. The gestation period for a rubber tree is 7
years. The tree is ready for tapping at reaching the desired girth level.
The first phase is the age of all expenses and no return, while the
second phase has both expenditures and income. Naturally, this


economic activity becomes worthwhile only when the returns accruing
after the 7th year is sufficient enough to compensate the expenditures
incurred in the previous periods. The expenditures in the rubber
plantations can be classified in two broad heads- Material Cost and
Labour Cost. The establishment cost of rubber plantation in current
prices is approximately Rs. 85,000 per hectare spread over a period of
seven years. The expenditures in the first year are the maximum,
around 37 percent. The shares of cost in the subsequent years are in
the range as follows - 2nd year -17%, 3rd year -14%, 4th year- 11%, 5th
year - 8 %, 6th year -7 %, & in the 7th year -6 %. (Bhowmik. I., 2006
personal communication). Labour expenditure during the mature
phase is the largest head of account. The approximate expenditures
on tapping and other labour activities are around Rs. 25000 per ha
per annum. The material cost is about Rs. 10000 per hectare. On the
other hand, the yield rate during the 8th year is around 800kgs per
hectare. The yield rate shows an increasing trend till the 15th year,
which is around 1400 kg. The productivity curve of rubber plantations
has an inverted ‘U’ shape and the by the 28th year, the yield rates
start declining sharply.
Considering the price of rubber being Rs. 60 per kg along with a
discount rate of 6 percent, the economic indicators, namely Benefit
Cost ratio, Internal Rate of Return and Net Present value all shows
very encouraging results.
Indicators Results
IRR 19%
NPV Rs.149680
BC Ratio 2.07
Payback 10.42
period years
However the calculation made on the economic aspect are provisional
and subject to change after field verification.
Rubber plantations therefore are economically viable and provide
substantial income to the planters. The business income from one
hectare of rubber plantation during the mature phases is
approximately Rs. 28000 per annum. In Tripura, the rehabilitation
schemes for landless people are so designed that the beneficiary
himself works as the owner operator. Therefore, such small farm-
holders enjoy an additional income with themselves, the labour cost
amounting to Rs. 25000.00 per annum (approx).
The land size under rubber plantation varies from 1 ha to 2.4 ha
between the beneficiaries and the production also varies as is evident
by the range of the yield. Naturally, even though as beneficiaries of a
particular centre they are clubbed together for various activities and
function, there are sizeable differences in the income levels of the
farmers. The difference in income is aptly reflected in the living
standards and household possession of valuables and assets.


Profit is a function of price and for rubber it is no exception. The
rubber prices have been reaching unprecedented levels in the last two
years. High rates of return will ultimately lead to increase in input
cost. But prices being linked to international market can come down
very sharply. In such a scenario, the profitability from plantations will
decline.
Problems
But for Tripura, the profitability can be raised with other non- price
factors also. Increasing productivity is an effort to be pursued at the
micro (farm) level. The yield rates in Tripura are much lower than the
national average and it is the most serious drawback of the rubber
sector in the state. Problems in the rubber plantations of Tripura are
numerous and can be categorised under three heads- (i) climatic; (ii)
technological/economic; and (iii) social political and institutional (SPI)
Climatic
o Erratic Rainfall- Rubber is a rain fed crop and Tripura does fall
in the zone of maximum rains. But the past few years have
witnessed no uniformity in the pattern of rains in the state. At
times there are massive down pour while longer periods pass
without any trace of rain. This year itself there was almost a gap
of 6 months between rains. Moreover, excessive rainfalls reduce
the number of tapping days that does affect the productivity and
production.
o Norwesters and cyclones often create havoc at the rubber
plantations. Matured trees, yielding high latex often gets blown
away and fell to the ground. The insurance cover against such
unfortunate events of damage and destructions appear to be
very paltry.
o The rubber tree is basically a tropical tree while Tripura belongs
to the sub-tropical region. Naturally the rubber tree is subjected
to major stress factor accruing to this region like low
temperature in winter (below 50C) and high summer
temperature (above 350).
Technological/ Economic
o The seven-year gestation period often turns out to be too long.
Many of the small farmers are apprehensive about an
alternative vocation during the first seven years.
o The fluctuation in price has an impact on the cultural practices
adopted by the farmers. At times of lower price the small and
marginal farmer often skip the necessary dose of fertilizer. At
high prices, there is always a fear of excess supply (Bhowmik. I.,
2006 personal communication).
o Paucity of reliable data is a problem. The future planning and
policy prescriptions turn out to be erroneous in case of using
fictitious data.


o Rubber farmers face an oligopsony, whereby they turn out to be
price takers (Bhowmik. I., 2006 personal communication).
Social, Political & Institutional
o Labour problems in plantations arise because of very low wage
differentials between the skilled labour and the non-skilled
labour. Moreover, the number of trained rubber tapper in the
state is very limited.
o Lack of awareness of the rubber farmers is often the cause of
poor productivity. Most of the tribal farmers are not educated
and are thus not able to follow the instructions in right earnest.
o The relatively high profitability of rubber has seen the entry of
many spurious investors in the rural areas who supply poor
quality plantings from their nursery. These substandard
varieties can ruin the progress achieved (Bhowmik. I., 2006
personal communication).
o The law and order situation in the state has gone through
numerous tumultuous times in terms of loss of life and
property. The TFDPC has lost almost 3000 hectares due to
insurgency.
o Field reports indicate of some private plantations have been
raised at forestlands and at sites not designated in the permit. It
is tough for the Rubber Board and other implementing agencies
to correctly ascertain the exact location of the plot (Bhowmik. I.,
2006 personal communication). Plantations in the forestlands
are illegal and warrant punitive action. Such efforts are wastage
of time and resources.
Prospects.
o The world rubber economy is growing at a faster rate with
demand outstripping supply thereby causing a sharp increase
in prices for RSS. Though this price hike is for the short run,
following consecutive draughts in Thailand, prices trends
suggest it to remain stable in the range of Rs. 60.00 to Rs.
90.00 for the next two years.
o The growth in the rubber sector contributes to the state
economy and increasing the land base will augment the state
economy further. We have seen that rubber is a highly profitable
venture even at conservative estimates. Naturally, with prices
remaining at such high levels the income of the state stands to
increase at greater level.
o Though there exists a lag in the matured area when studied in
respect to the total area, the tappable area in Tripura by 2009-
10 is estimated to be around 27000 ha. Investors and
entrepreneurs of the state can also go for production of rubber
based industrial goods. Availability of raw material will be an
incentive.


o The most encouraging fact about Rubber in Tripura is the
impressive growth rate for yield. Increases in yield will result in
greater production and higher profits (Bhowmik. I., 2006
personal communication).
o Tripura has huge potential to develop rubber as its base for
economic development. The missionary attitude adopted by the
leading agencies to expand its network is itself going to give
boost to the rubber sector.
o The target to increase existing area by more than 7000 hectares
in the next three years is very encouraging. The plan to plant
rubber trees in the Indo- Bangladesh border aggregating to
3874 hectares will be a major contributing factor to the
economic development of those areas. Similarly, enabling
plantation along the highways and on the degraded forestlands
will provide the land resources to TFDPC, whose expansion had
slowed down mainly due to land crisis.
o India has started exporting rubber sheets in sizeable quantity
since 2002-03 and Tripura has played a small part in exports to
Bangladesh in the past. Increased production provides greater
opportunity to avail this alternative and earn foreign exchange.
o Facilitating cargo movement by using the Chittagong port will
cut down on transport cost for the producers who sell their
product to the mainland rubber goods industries.
o The setting up of a rubber based industrial unit on 14th August
2006 has been an incentive for producers of rubber. Moreover,
increasing the total volume of production will further attract
investor from other states. With rubber goods manufacturing
units being initiated, the plantation owners can be
comparatively assured of a higher farm gate price.
Suggestions
o At the macro level, production can be increased only either by
expansion of area and increase in productivity or both. The
Rubber Mission has initiated the action plan for expansion of
area and the targets for different implementing agencies are very
impressive. If achieved, Tripura’s rubber economy is poised for
high growth that will substantiate the overall economy of the
state by a great extent.
o Increases in yield are an absolute necessity. Yield is dependent
on several factors like – nature and age of the tree (clone),
efficiency of the tapper, adaptation of cultural practice, etc.
o Trained tappers should be employed. The dearth of trained
tappers indicates the urgent need for training programmes. The
Tripura Rubber Mission has already taken up initiatives for
such training programmes. But the frequency of such
programmes has to be increased.


o A database of rubber plantation and planters should be
prepared on the census method, so that discrepancies arising
out of use of secondary data are avoided. Tripura Rubber
Mission with the support from the State Government, Rubber
Board and the Directorate of Census Operations may undertake
such an exploration. The members of different Rubber
Producers Society along with unemployed tribal youths from the
rubber growing villages may be employed for data collection.
o Field level exploratory surveys should be undertaken to identify
the problems faced by the rubber farmer.
o The Tripura Rubber Mission should undertake an awareness
campaign on the ecological contribution of rubber tree. There
have been certain vested interest groups who blame rubber
plantations for the increasing average temperature in the state
for the last few years. Advertisements on the local daily
newspaper informing the ecological benefits accruing from
rubber plantation may be published.
o Identification of plantations in the forestland as well as punitive
active action against the offender is necessary. But slashing
down the existing trees means greater loss to the economy and
the ecology. Forest laws are rigid yet efforts can be made to
settle down the issue by imposing fines and penalties. In
extreme cases judicial action may be taken.
o Lastly but not the least, rubber plantations being a viable
source of earning for an entire economic life, educated youths
can be encouraged to resort to tuber plantations as a source of
livelihood. Tripura Rubber Mission can initiate short-term
certificate course in plantation management in collaboration
with educational institutes’ like- Indian Institute of Plantation
Management, Bangalore, Tripura University, Agartala and
IGNOU, New Delhi.

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