OVER one million rubber growers in Kerala are the worst losers. According to them, the union budget has neglected the sector which constitutes 12 lakh farmers nationally. The rubber plantation owners and small growers in the state were expecting at least Rs 500 crores from the centre to help the sector. Kerala has been looking forward to a rubber price stabilisation fund of Rs1000 crore and steep hike in the import duty. This has not happened. Making matters worse, the fund allocation to Rubber Board in 2016-17 is lower by Rs 29 crore compared to last year. The budget has provided only Rs 132.75 crore for the Board, which is the lowest in the last three years. The budget outlay was Rs 161.75 crore in 2015-16, which was lower than Rs 168.51 crore sanctioned in 2014-15. Rubber growers and the people’s representative have been demanding the central government’s support. But it fell on deaf ears. Demands like increase of import duty or curb on imports were also not heard. Rubber price in Kerala fell down to the level of Rs 94-97 per kg. In the recently placed state budget also, there is no plan to revive this important sector. Kerala had hopes that the centre would provide financial support to rescue this sector. That hope was belied in the union budget. The domestic tyre industry is also not happy with the budget as no announcement was there in the budget to curb cheaper import from the neighbouring countries.

The union budget has also disappointed the fisheries sector on which around 90 lakh people are depending for their livelihood. Repeated requests for subsidy were totally ignored. The fisher folk of Kerala have been demanding measures for modernisation of boats and fish landing centers. Kerala is a maritime state with biggest annual average fish catching of around 10 lakh tonne per year. As much as 50 percent of the catch in the state is consumed domestically and the rest is exported.

More tax on jewellers also hurt this thriving sector in the state. All jewellers in the state had shut down in protest. The state’s demand for a package to support the non-resident Malayalis returning from the Gulf countries is not addressed by the union finance minister in his budget speech.  The state’s hopes of the union government declaring Sabarimala as a national pilgrimage destination also were dashed.

The union budget offered precious little by way of allocation to major public sector undertakings in the state. The Cochin Shipyard, the country’s only profit making public yard has zero budgetary allocation. At the same time, the service tax has been hiked. Fertilisers and Chemicals Travancore (FACT) has received only nominal budgetary support. Hindustan Organic Chemicals and Hindustan Insecticides Limited also have been ignored in the budget.  

CPI(M) state secretary Kodiyeri Balakrishnan criticised the Modi government for showing the same neglect towards Kerala as was shown by the previous UPA government. Kerala was completely neglected by the railway budget as well. The union budget had no provision for a special package for rubber farmers and for a price stabilisation fund. There was no scheme for rejuvenating the agricultural sector and central PSUs in the state either. Kerala has not been allotted IIT or AIIMS. Instead, the budget burdened the common man with additional resource mobilisation to the tune of Rs 20,670 crore by way of indirect taxes. It was clear from the budget speech that there was a move to limit LPG subsidy. The BJP which opposed the use of Aadhar card was now making its use widespread, opined Kodiyeri in a press note issued from the AKG centre. Leader of opposition VS Achuthanandan said the budget cheated the people. The expectations of the state in terms of providing rehabilitation package for gulf returnees, and a special package for the rubber plantations are not taken note of.   Chief Minister Oommen Chandy and KPCC president VM Sudheeran also criticised the budget.