 |
Rubber Growers Keen on Tapping Into Real Estate
Author: Property  | Posted: 18-03-2008 | Comments: 0 | Views: 36 | Rating: (114)  (?) 
Kochi: The proposed 20% subsidy for rubber replantation—announced by the Union government on Wednesday as part of a Rs241 crore programme in the 11th Plan period—may not be incentive enough to keep growers from converting their gardens into real estate.
Rubber production in India has been declining in recent years, plagued by high labour costs and last year’s illnesses to tappers, and poor motivation could see the country fall from the top tier of global rubber producers.
Scarcity of labourers for replanting, high tapping costs and potential for better prospects from converting the plantations into real estate for sale are keeping farmers away from the sector, said Suresh Koshy, president of the National Federation of Rubber Producers Societies.
“It is in this backdrop that growers feel the (Rubber) Board and the government should review the subsidy amount upwards and attract more farmers to replantation,” he said, adding that the farmers were expecting a subsidy of at least 40% for replantation.
Sajen Peter, chairman of the Rubber Board, the government’s trade promotion body, admitted that high tapping costs and more money from converting plantations into real estate, especially in the traditional rubber growing area of Pathanamthitta district in Kerala, have proved detrimental to the rubber sector.
The board had recommended a subsidy of 25% for replantation.
High labour cost coupled with a scarcity in workers made the board arrive at a replantation cost of Rs1 lakh per hectare (ha) in traditional areas in the state and Rs80,000 for non-traditional areas.
As per the scheme, the board expects to cover 33,000ha for replanting during the 11th Plan period. Of this, 1,750ha each will be in non-traditional areas and the north-eastern parts of the country.
Another 25,000ha is expected to be brought under rubber cultivation in the North-East.
The board has already developed sufficient material for replanting. It includes the widely planted rubber clone RRII 105 (RRII stands for the Rubber Research Institute of India), often described as the wonder clone, which has helped India top rubber productivity globally with a yield of 1,879 kg per hectare annually.
The Rubber Board has also developed new clones that have shown promise, such as RRII 414 and RRII 430, Peter said. Still, lower production of around 820,000 tonnes in 2007-08 may see Vietnam pip India in rubber productivity, he admitted. Much of this is owing to a viral fever that gripped Kerala in May and June and kept tappers off work, and incessant rains till August. Peter said there is pressure on the government to raise the subsidy component. As the new plants will take around six years to begin yield, the subsidy will be distributed in phases over this period.
Koshy added that the high wages for tappers are a major stumbling block in the rubber sector, especially for small growers who have less than 2ha. From 38 paise a day per tree in 2006, tapping costs have gone up to 75 paise and are expected to touch Re1 in the coming season.
In addition, growers have to deal with the costs of curing the latex to turn it into sheets, as well as for drying and transportation costs.
These are not the only reasons for the growers’ reluctance to replantation.
With rubber trading at an attractive Rs105 per kg, most growers want to cash in on the high prices than wait over the long yield period for the new plants.
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Source: http://www.articlesbase.com/real-estate-articles/rubber-growers-keen-on-tapping-into-real-estate-362377.html
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Related Articles
Various National Real Estate Developers Beeline for Chandigarh
By: Property | 16/01/2008 | Business
Chandigarh is soon to emerge as one of the most sought after tier-III cities in the next 5 years in terms of commercial, industrial and residential sectors. With major IT companies foraying into the region along with national as well as international developers to meet the expected demand of quality residential and commercial space.
Lusting for Lukhnow
By: Property | 10/03/2008 | Real Estate
Saeed Anwar, an NRI from Dubai, wanted a house in his hometown Lucknow. He bought two plots for Rs 3.5 million ($880,000) in 2005, which are together worth Rs 30 million today. With returns as high as this, many Gulf NRIs are investing in the city’s real estate.
$30 Bn Fdi to Flow Into Realty in 10 Yrs: Assocham
By: Property | 17/06/2008 | Real Estate
New Delhi, June 15: With the real estate sector witnessing a steady growth of more than 30 per cent, Foreign Direct Investment (FDI) worth 30 billion dollars is expected to flow into the domestic market in the next 10 years, an Assocham study says.
Bonanza for Old Mumbai Firms
By: Property | 20/01/2008 | Real Estate
The Maharashtra government’s decision to repeal the Urban Land Ceiling and Regulation Act (ULCRA) in order to obtain funds under the Jawaharlal Nehru Urban Renewal Mission has spelt a bonanza for some of the oldest companies in the city. According to real estate consultancy Knight Frank India in Mumbai alone as much as 17,000 acres of prime land will be released across the city. Others estimate the amount of land to be released at 30,000 acres.
Harvard Eyes Indian Realty Sector With Corporate Programme
By: Property | 12/03/2008 | Real Estate
New Delhi, March 10 (IANS) Eyeing the “explosive” realty market in India, the Harvard Business School (HBS) is set to offer a short duration certificate programme to top executives of real estate industry - but at a stiff fee of Rs.297,000 ($7,310). The Ivy League university will offer the four-day-long programme at Hyderabad Convention Centre beginning June 17.
Deutsche Bank Arm Buys Stake in Golden Gate
By: Property | 23/01/2008 | Real Estate
RREEF, the global alternative investment management business of Deutsche Bank, advised by Deutsche Asset Management (India), has made its first real estate investment in India. RREEF has nearly completed the purchase of an undisclosed stake in Bangalore and Hyderabad-based real estate development company, Golden Gate Properties, for $70 million (Rs 273.5 crore).
Dubai Properties Targets High Net-worth Indian Investors at Mumbai Extravaganza 2008
By: Property | 14/03/2008 | Real Estate
Mumbai Extravaganza offered a unique platform for international real estate institutions as well as developers to launch and promote new products. Apart from high net worth individuals, the high life show also attracted professional advisors such as lawyers, bankers, brokers, top management and decision makers of Mumbai´s leading corporations, successful entrepreneurs and celebrities.
Mundra Growth Impresses Singapore Indian Chamber of Commerce Team
By: Property | 25/06/2008 | Real Estate
AHMEDABAD: A delegation of the Singapore Indian Chamber of Commerce and Industry, currently on a trip to Gujarat, on Thursday visited the Mundra port and other facilities being developed there in the private sector.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Are there guidelines for a Section 8 landlord to ...
By: Sparky | 20-07-2008
Are there guidelines for a Section 8 landlord to know about as a tenant is moving out?
Buying and selling houses
By: Yung Misery | 16-07-2008
what's the fastest way to buy and earn profit on a house?
Pros/cons of seller "give-back" to seller
By: sunshine | 16-07-2008
What are the pros/cons to the seller asked to provide a "give-back" to the buyer to cover closing costs? Is the sale price for tax purposes then considered the higher amount (including the give-back) or the lower "real" selling price?
Real Estate Short Sale
By: pypermaxkidd | 13-07-2008
Does anyone know a real estate agent in Waco Texas who is experienced in short sales?
Family tree
By: Lisa | 13-07-2008
where does the name welna originate from
How do I modify a mortgage loan when the assessed ...
By: J | 13-07-2008
How do I go about modifying a mortgage loan due to the assessor sending me a letter stating that the assessed value has dropped to a ridiculous amount! Just purchased property August 07. I am taking legal action due to the real estate purchase and loan transaction being overtly fraudulent, meanwhile I am responsible for this loan. Please offer any thoughts.
Q&A Powered by: 
Latest Real Estate Articles
Quick Profits With a Property Tax Sale
By: Joe Cline | 25/07/2008
Different resources appear for the savvy real estate investor and to take advantage of them is to make some serious profits. Each of the resources has a different time frame involved with it and as such you have to learn which ones will produce the fast money and which require patience. The main point to be made here is the fact that you can easily turn a profit if you are involved with the right methods. This speaks to the need to learn all that you can about real estate investing resources.
Getting and Keeping Your House in Order
By: Joe Cline | 25/07/2008
Organization is, for most people, one of those lofty goals that everyone has but few accomplish. If they do accomplish it, the order is maintained for no more than a day, if that, and in the blink of an eye, chaos has crept back in. You know it’s true. You’ve been trying to become organized for days, weeks, months, if you’re honest, years. However, it seems like something that may never happen, and you’re all but ready to give up. You don’t have to. Approaching organization from the right standp
Gurgaon- Ultimate Destination for Developers
By: George Gonigal | 25/07/2008
Real Estate in Gurgaon has seen major developments over the past few years with new residential real estate market developed.
TIC Securities-Licensed Registered Representatives Can Only Handle TIC Interest Transactions
By: Kathryn Landry | 25/07/2008
there is continuing tension existing between the real estate industry and also the securities industry with regard to which industry must have control over the selling process involved in transacting TIC interests.
TIC: Qualified Intermediaries Will Complete Required Legal Formalities With Regard To 1031 Exchange
By: Kathryn Landry | 25/07/2008
TIC: Qualified Intermediaries are usually referred to as 1031 Exchange Accommodators by anyone engaged in real estate business and some even call them the 1031 Exchange Facilitator whose main functions are to complete the required legal documents so that all applicable laws as well as regulations and even rulings are complied with.
Tenant In Common: Securities Or Real Estate: A Matter That Is Open To Interpretation
By: Kathryn Landry | 25/07/2008
Mostly, people that make TIC (tenant in common) investments will have 1031 exchange in mind and even though TIC as an industry is just a small part of 1031 market, it is still increasing at a good rate and thus worthy of serious consideration.
Working With TIC: Asset Type Prognostication
By: Kathryn Landry | 25/07/2008
There are a few different real estate investments to choose from, but one that offers the most value and least risk is the TIC. The TIC or tenants in common investment is also known as the 1031 exchange, and is an essential instrument maximizing capital growth of real property assets.
Things For Buyers to Consider When Determining the Appropriate Property Value and Offer Price
By: Greg Gagnon | 25/07/2008
Determining the value of home can be sometimes a difficult task for a buyer. Just as there are many factors that can impact a home's value, the details and potential success of your offer also rely on several pieces of information. If you are thinking about buying a home, you...
More from Property
Bangalore Real Estate: Buyers Hesitant, Expect Prices to Fall
By: Property | 07/07/2008 | Real Estate
Bangalore, July 6 There is good demand in the real estate sector, but it has not translated into successful transactions because people are hesitant to buy now expecting a fall in prices in the future, said Mr Kishore Jain, Managing Director, Jain Heights and Structures Pvt Ltd, a Bangalore-based real estate company.
Realty Dreams of Small, Mid-sized Cos Crumble
By: Property | 01/07/2008 | Real Estate
MUMBAI: Grappling with a slowdown across segments, the Indian property market is heading towards the next phase of consolidation. Liquidity crunch in the real estate market is beginning to drive many mid-sized and small developers to scrounge for cover.
Mundra Growth Impresses Singapore Indian Chamber of Commerce Team
By: Property | 25/06/2008 | Real Estate
AHMEDABAD: A delegation of the Singapore Indian Chamber of Commerce and Industry, currently on a trip to Gujarat, on Thursday visited the Mundra port and other facilities being developed there in the private sector.
$30 Bn Fdi to Flow Into Realty in 10 Yrs: Assocham
By: Property | 17/06/2008 | Real Estate
New Delhi, June 15: With the real estate sector witnessing a steady growth of more than 30 per cent, Foreign Direct Investment (FDI) worth 30 billion dollars is expected to flow into the domestic market in the next 10 years, an Assocham study says.
Trikona Raises $150 Mn From German Firm, Offers Stake in Indian Projects
By: Property | 11/06/2008 | Real Estate
Chennai, Jun 9 Trikona Capital Limited, one of the leading fund management firm for institutional investment in Indian real estate and infrastructure, announced that it has extended its relationship with SachsenFonds Holdings GmbH, a German fund manager with $7.5 billion under management, in a $150 million deal that includes minority stakes of current Trikona assets and investments in new projects, including a $40 million housing project at Mumbai.
Bank of Baroda Enters Into Memorandum of Understanding With Dubai Properties
By: Property | 14/05/2008 | Real Estate
Bank of Baroda, India’s international bank has entered into a Memorandum of Understanding (MoU) with Dubai Properties, the region’s leading real estate company, whereby the bank will provide home finance to buyers of residential units in a number of Dubai Properties’ projects across the UAE.
Haryana’s Apartment Law on Shaky Ground
By: Property | 12/05/2008 | Real Estate
Twenty-five years after its enactment, two notifications and one amendment later, the Haryana Apartment Ownership Act (HAOA), which seeks to regulate the development and administration of group housing colonies in the state, desperately needs a re-look. The law was passed when the first condominium to come up in Gurgaon was still another six years away. With no local know how, the government drew perfunctorily on the experience of other states.
Mahindras to Drive Into Low-cost Housing Projects
By: Property | 08/05/2008 | Real Estate
Mahindra Lifespaces Developers (MLDL), the housing and real estate arm of the $ 7.5 billion (Rs 30,566 crore) Mahindra Group, is planning to enter the business of building low-cost houses for the middle-income group. Low-cost houses have become a fad among young people, as they are available at an affordable cost of Rs 25-30 lakh.
|
|
Finance 
