The Hindu : National : Plantation sector in crisis: Minister

Online edition of India's National Newspaper
Sunday, Jun 18, 2006

National

National

Plantation sector in crisis: Minister

Sushma Ramchandran

Writes to Manmohan, says no support to efforts

Jairam Ramesh

New Delhi: Minister of State for Commerce Jairam Ramesh has warned that millions of plantation and marine employees may be affected owing to lack of coordination between the Ministries concerned, as well as between the Centre and States on crucial issues. He has also stressed the need to be "very careful" on commodities such as pepper, tea, coffee and rubber while finalising the proposed free trade agreement with the ASEAN.

In a letter sent to Prime Minister Manmohan Singh earlier this week, Mr. Ramesh has said that the plantation sector is in "deep crisis." It has not get the attention it deserves in the Commerce Ministry, partly because its contribution to export earnings is not large and partly because of the focus on trade negotiations and foreign travel. "I am devoting a lot of time to this sector but there is very little institutional support to my efforts." The plantation sector directly provides jobs to five to six million people. The Minister, who recently travelled extensively in Kerala and Karnataka to meet the stakeholders in the rubber, spices, coffee and marine industry, points out that the crisis is largely due to a decline in productivity due to ageing plantations. In the light of the proposed free trade agreement with the ASEAN countries, he has emphasised the need to be "very careful" while dealing with Vietnam for pepper, tea and coffee and with Thailand, Malaysia and Indonesia for import of natural rubber.

On the special purpose tea fund for replantation, he has said similar financial mechanisms are "urgently" needed for rubber, pepper and coffee. A sum of Rs. 2,000 crore will be needed for replanting these commodities over the next five to seven years. On the impact of easier imports on this sector, he has said the surge of pepper imports from Sri Lanka, following the free trade pact, has adversely affected the domestic producers. He has proposed that Sri Lankan pepper be allowed only through the Kochi port.

Similarly, on cardamom, he has pointed to substantial imports through Nepal of Guatemalan cardamom, which has affected the domestic producers. In this context, he has sought stepping up of anti-smuggling operations.

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