The taskforce on the rubber sector set up by the Union Government has recommended treating natural rubber as an agricultural product and its inclusion under the minimum support prices (MSP) scheme, the Centre told the Lok Sabha on Wednesday.
However, natural rubber has not been included in the selected 25 crops for which MSP is notified every year as it does not fulfil most of the criteria for inclusion under the scheme, Union Minister of State for Commerce and Industry Hardeep Singh Puri said in a written reply.
The commodity is also not covered under the comprehensive scheme for studying the cost of cultivation of principal crops in India, he said, adding that the Centre fixes MSP for 25 agricultural crops.
MSP for the crops is fixed on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP).
The CACP, while recommending MSP of mandated crops, considers various factors which inter-alia include the cost of production, overall demand-supply situations of various crops in domestic and world markets, domestic and international prices, inter-crop price parity, terms of trade between agriculture and non-agriculture sector, Puri said.