Centre plans major plantation drive in Kerala

The plantation sector in Kerala is all set to see a major rejuvenation and re-plantation drive in a bid to boost productivity. The drive will extend across tea, coffee, pepper, cardamom, rubber, cashew and coconut plantations.

According to Union minister of state for commerce Jairam Ramesh, who held discussions with the Kerala Chief Minister V S Achuthanandan, his cabinet colleagues and officials in Thiruvananthapuram, the rejuvenation and re-plantation exercise was necessary as the state's plantation sector output had dropped considerably.

This had, in turn, led to low productivity and low prices, he added. The re-plantation and rejuvenation exercise would be done over a period of 5-7 years, at a cost expected to be close to Rs 3,500 crore. The exercise would be a Centre-State collaborative venture, the minister said.

Giving details of the cost break-up of the project, the Union minister said while 25 per cent of the cost would be subsidised, another 25 per cent would be put in by the owner of the plantation, and the remaining 50 per cent would be a soft loan from a special purpose fund.

The exercise has been planned on 70,000 hectare of pepper plantations, 25,000 hectare of cardamom, 50,000 hectare of rubber and 4 lakh hectare of coconut plantation.

While investment of around Rs 350 crore each is estimated for pepper, cardamom and rubber, the coconut re-plantation efforts are likely to incur a cost of around Rs 1,382 crore.