Ooty: Centre urged to bail out crisis-ridden plantations
Wages in south India are very high compared to other plantation states and prices have no co-relation with the cost of production.
OOTY: As issues like non-remunerative price and high cost of production in the plantation industry have begun to trouble it, the United Planters Association of South India (UPASI) pleaded with the Centre to bail out the plantation industry from the present crisis.
Stating that it is a challenging time now for the 150-year-old plantations in south India, A.E. Joseph, president, UPASI, stated that plantations being labour intensive, the labour component has high impact on costs.
Wages in south India are very high compared to other plantation states and prices have no co-relation with the cost of production. In today’s open economy, prices are determined by world supply and demand situation. Most importers and major buyers insist on a sustainability certificate from foreign certification agencies to ensure that plantation commodities they procure are produced in a sustainable manner, but it is unfortunate that they do not offer a sustainable price, he said.
The prices of tea, coffee and natural rubber are much below the cost of production. While the prices of other commodities have increased manifold over the past two decades, the price of tea increased only by 2.46 times, coffee arabica 1.92, coffee robusta 1.58 and rubber 2.47 times.
A comparison with wages which constitute more than 50 per cent of the cost for plantation commodities, is appalling. Tea workers’ wages, during the last two decades has increased 7.69 times, coffee 9.72 times and rubber 8.2 times. Plantation commodity producers in India need to improve the land and labour productivity considerably to remain in business. This requires considerable investment in research which the industry at present is not in a position to take up. The need of the hour is a high yielding variety planting material which is resistant to pests and diseases and tolerant to drought and machines for harvesting and field operations suitable to hilly terrains.
Joseph expressed hope that with suitable govt support, plantation industry will be in a position to overcome this impasse.