The Hindu : Business : ‘Floor price for tea growers being examined’

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Tuesday, Sep 18, 2007
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‘Floor price for tea growers being examined’

Special Correspondent

Panel to look into small growers’ demand, says Kamal Nath

— PHOTO: D. RADHAKRISHNAN

LENDING A HELPING HAND: Union Commerce Minister Kamal Nath trying out an irrigation accessory displayed at an exhibition organised as part of the annual conference of UPASI at Coonoor on Monday.

UDHAGAMANDALAM: The demand by small tea growers for a floor price will be considered, Union Minister for Commerce and Industry Kamal Nath said at Coonoor on Monday.

Inaugurating the 114th annual conference of the United Planters’ Association of Southern India (UPASI), Mr. Kamal Nath said a committee would be formed within a fortnight to go into the various aspects of the demand.

Stating that it was up to the industry and the growers to suggest ways to implement schemes, he said the Government’s role would be that of a facilitator. The small growers constituted about five per cent of the total number of producers.

Auction system

Stating that rapid changes were taking place at the global level, he said they were throwing up several economic challenges. In the last three decades, the tea industry had not ploughed back its profits. Consequently, in implementing rejuvenation and other schemes, the industry was ten years behind. Urging the planters to reflect, Mr. Kamal Nath said the auction system also needed to be streamlined.

Averring ‘implementation of subsidy schemes can never be a permanent solution,’ he, however, said a helping hand needed to be extended to the industry. Importance should be given to value addition. A cluster approach in processing raw tea leaves was being considered.

He assured the industry that the government would stand by the plantation sector in getting carbon credit as the planters were protecting flora and fauna and in the process maintaining the ecological balance.

UPASI President J. K. Thomas said that in bringing down the cost of production, the Central and State governments should extend a helping hand.

Restrictive and archaic laws should be done away with.

Root cause for crisis

The Minimum Wage Act was one of the most misused pieces of legislation as far as the plantation sector was concerned.

Since burgeoning surpluses were the root cause for the crisis in the plantation sector, massive domestic and international promotion campaigns should be launched and the planters should be allowed to diversify.

Nilgiris MP R. Prabhu said that out of about 165 bought leaf tea factories in the district, only around 50 were functioning.

Since many others had been declared non-performing assets by banks, the government should intervene.

On the occasion Mr. Kamal Nath released a new tea clone brought out by the Tea Research Institute of UPASI.

UPASI Vice-President C. P. Kariappa proposed a vote of thanks.

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