Kerala: Crisis-hit plantation sector awaits revival

KOTTAYAM: Though the plantation crops occupy 34 percent of the cropped area in the state, the sector is in a crisis over past few years thanks to a high cost of production, land-related issues, and low price realisation. Low productivity of land, labour and capital, climate change, high taxation, high input cost and need of high workforce contribute to the high cost of production. New investments get delayed for mounting legal expenses owing to the litigations over land titles.  Regardless of crops, rubber, coffee, tea, cardamom or pepper, the sector is passing through a crisis, and visionary governmental initiatives are needed to revive it.

Moreover, the unrestricted imports of commodities and our inability to move up in the value chain keep us low-end producers and thus low price realisation. According to the All Kerala Planters Association, the state has unreasonable taxation. The plantation tax, the agriculture income tax and the basic land tax are exorbitant, giving others a competitive edge. "The plantation tax is Rs 700 per hectare, which is the highest. The agricultural income tax claims 50 percent of one's profit which is existent only here. The basic land tax is Rs 500 per hectare whereas in Tamil Nadu and Karnataka it is less than Rs 100,"  its secretary P.K. Ajith told DC.

Former Rubber Board chairman Dr P.C. Cyriac advises rubber farmers to fell the trees after attaining maturity and plant crops such as cocoa, oil palm, cashew and coconut. "Growing these crops will be a most likely solution to overcome recurrent fall in rubber prices," he told DC. The United Planters Association of South India (UPASI) secretary general Ullas Menon demands the state government to take some concrete steps for reviving the plantation industry.  "All commodities are facing many issues. The government should prioritise some decisions to rescue the plantation industry," he told DC. 

Director-research at the Rubber Board, Dr James Jacob, said the Union and state governments should scientifically approach the issue and should bring about projects which really will act as a solution. "The need of the hour is far-sighted policies to increase production and to reduce costs. It can only bring about sustainable help to rubber farmers," he told DC. Lalaji Babu, president of the All India Plantation Workers Federation (CITU), demanded an exemption from agricultural income tax and replantation of the more than 3 lakh rubber trees which will give employment to many.

Impact of climate change

The plantation sector is a prime victim of climate change that has resulted in a drop in yield due to increased pests and infestations, high daytime temperature and an alarming rate of topsoil erosion. It has led to a high cost of production. The maintenance of the sector is also equally pertinent in the ecological point of view.  The India State of Forest Report 2015 says the forest area has increased to 1,317 square kilometres and the plantation sector in the state is a reason for the achievement. Plantations provide the highest tree canopy and biomass recycling.