Rs 27.5 crore allocated under Central scheme to boost rubber processing infrastructure in tribal areas, aiming to enhance farmer income, create employment, and strengthen local production through smoking houses, roller machines, and skill development initiatives.
In a major push toward strengthening rural livelihoods and enhancing value addition in the rubber sector, the Tribal Welfare Department has allocated Rs 27.50 crore for the development of rubber processing infrastructure in tribal areas during the 2025–26 financial year. The allocation has been made under the Centre’s Special Assistance to State for Capital Investment scheme, according to a highly placed official.
The funds will be deployed in a phased manner to establish local units for the production of rubber sheets under the Rubber Processing Scheme (RPS). The initiative primarily focuses on constructing smoking houses, installing roller machines, and conducting structured skill development training programs aimed at empowering tribal youth and small-scale rubber growers.
Phased Fund Release and Unit Costs
Department sources revealed that the estimated cost for setting up each rubber processing unit stands at approximately Rs 75 lakh. An administrative approval of Rs 9.20 crore has recently been issued as the final instalment. Earlier tranches amounting to Rs 11.30 crore and Rs 2 crore had already been released, thereby completing the full sanctioned allocation of Rs 27.50 crore.
Officials confirmed that the funds have been transferred through the Drawing and Disbursing Officer (DDO) of the Tribal Welfare Department to the Khumulang branch of the Tripura Tribal Areas Autonomous District Council. Financial transactions related to the project will be conducted through a designated account maintained at the Tripura Gramin Bank, Khumulang branch.
Construction of smoke houses and installation of roller machines will proceed strictly according to approved technical estimates, ensuring adherence to quality and financial norms.
Addressing Infrastructure Gaps in Rubber Processing
Although Tripura ranks among the leading rubber-producing states in the country, officials pointed out that the lack of adequate primary processing and storage infrastructure has long affected farmers’ earnings. In many tribal areas, growers are forced to sell raw rubber to intermediaries due to the absence of local processing facilities, resulting in lower price realization.
The new infrastructure is expected to significantly improve the quality of rubber sheets produced locally, enhance bargaining power for farmers, and reduce dependency on middlemen. By enabling processing at the source, the government aims to increase income levels for small and marginal growers while ensuring greater value retention within tribal communities.
An official stated that localized rubber sheet production will not only improve price realization but also strengthen the supply chain by reducing transportation costs and post-harvest losses.
Skill Development and Employment Generation
In addition to infrastructure creation, the project incorporates a comprehensive skill development component. Training programs under the Rubber Processing Scheme will equip local youth with technical knowledge related to rubber sheet production, machine handling, and quality control processes.
Authorities believe that this dual approach—combining infrastructure investment with human resource development—will generate sustainable employment opportunities in tribal regions. The initiative is also expected to encourage entrepreneurship among tribal youth, paving the way for micro-enterprises in rubber processing.
Monitoring, Reporting, and Compliance Requirements
Sources indicated that strict monitoring mechanisms have been put in place as per government guidelines. Monthly progress reports must be submitted by the 5th of every month. Additionally, utilisation certificates along with geo-tagged photographs are mandatory upon completion of each phase of work to facilitate the release of further instalments.
However, sources added that no formal progress report has yet been submitted. Officials emphasized that timely reporting and compliance are essential to ensure uninterrupted fund flow and project completion within stipulated timelines.
Political Reactions and Official Clarifications
Meanwhile, the ruling party in the ADC, Tipra Motha, has alleged that adequate funds are not being provided by the state government for development in ADC village areas. However, official documents suggest that funds under various schemes, including this capital investment initiative, have been duly transferred to the ADC administration.
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Officials maintained that the allocation reflects the government’s commitment to inclusive development in tribal regions and aims to bridge infrastructure gaps that have persisted for years.
With a focused investment of Rs 27.5 crore, the rubber processing initiative is poised to transform tribal economies by strengthening value chains, increasing farmer income, and creating employment opportunities in rural areas.
