'Fixation of limits on purchase of fertilisers will hit plantation sector'

Plantation sector in Southern India said that the Ministry of Chemicals & Fertiliser's proposed decision to implement a maximum limit for purchase of subsidised fertilisers and for plantation is very low for the plantation sector. The Ministry has proposed the limit be fixed at 200 bags per month per plantation.

The United Planters’ Association of Southern India (UPASI), a 128-year old apex organisation of Tea, Coffee, Rubber, Cardamom and Pepper plantations in the Southern States of Kerala, Tamil Nadu and Karnataka employing over 13 lakh workers and spread over 11.57 lakh hectares comprising of 12.60 lakh holdings.

Prashant Bhansali, President, UPASI said that the limit prescribed is very low for the plantation sector.

The size and production of the plantation has to be taken into account.  The allocation will have to be on a per hectare basis rather than per plantation, as the size of plantations ranges from a few hectares to a few thousand hectares. 

He said that each hectare of plantation requires from 2 bags to 4 bags per month depending on the land productivity.  Any reduction in the allotment of subsidised fertiliser  will adversely impact many growers and the production will drop in larger plantations, if adequate fertiliser is not applied. 

Plantations require the fertiliser during certain months of the year, depending on the rainfall, and therefore will not be in a position to buy every month.  The limits, if any, will have to be allotted on an annual basis.  The annual requirement of fertilisers varies from 24 bags per hectare to 48 bags per hectare.

"Entitlement should be based on land holdings and land area is a more practical criteria," said Bhansali.

In a letter to the Ministry, he said that the arbitrary fixation of limits without taking into account the above factors will adversely impact the competitiveness of the industry, especially when it is going through a difficult phase due to the rise in the cost of production on account of high wages and input costs.  It is very important that a one-size-fits-all approach should be avoided in the plantation sector and important factors such as size of holding, land productivity and the seasonal nature of the industry should be taken into consideration. 

The proposed restrictions will have serious implications for the export competitiveness of plantation commodities and will deny level playing field in the international market. The Department Related Parliamentary Standing Committee on Commerce in its 102nd report had observed that the high cost of production in plantations would adversely affect price competitiveness in the world market. Accordingly, the Committee had recommended to the Department to ensure that fertiliser subsidy is available to growers and to engage the State Governments for timely availability of fertilisers.

UPASI had requested the Ministry of Fertilisers & Chemicals that the fertiliser subsidy be linked to the actual hectarage under cultivation for plantations.  This would enable judicious use of subsidized fertilizer for its intended objective of augmenting the production and productivity of agriculture in the country and making the country self-sufficient with adequate exportable surplus in line with the vision of Atma Nirbha Bharath.

"The proposed measures will no way help in preventing the misuse of fertiliser but will put genuine growers of plantation crops into great difficulty and inconvenience and, therefore, it is not justifiable," said Bhansali.