Upasi calls for structural changes

The United Planters' Association of Southern India (Upasi) has urged the Union commerce ministry to take immediate long-term measures to stabilise the plantation sector.

According to the association, there is an urgent need to change the existing regulatory and legal structure to give a much-needed impetus to the high-growth sector. The Upasi team, which had met Union commerce minister Kamal Nath earlier this week, also sought suitable change in development and marketing strategies.

In a memorandum submitted to the minister, Upasi president E B Sethna and his predecessor, Anil Kumar Bhandari, said the travails of the plantation sector, especially tea, continue unabated and need immediate structural changes to initiate remedies.

According to Sethna, the minister concurred with the suggestions and told Upasi that the ministry would study the proposals and call for a joint consultation shortly to start the remedial process.

According to Upasi, structural changes in the plantation industry fall under two basic areas. A change in the regulatory and legal structure binding the industry being one, and a change in the development and marketing strategies for this industry the other. A massive domestic generic promotional project is needed for tea, coffee and spices.

On the regulatory and legal framework, the plantation industry is largely bound by the Plantations Labour Act, Minimum Wages Act, Land Reforms Act and the Respective Commodity Acts.

Apart from these, there are also the marketing control orders and the stipulations of the Essential Commodities Act and PF Act. These need urgent attention as dues under them impact 42-46 per cent of the plantation sector earnings.

As far as development and marketing strategy are concerned, Upasi pointed out that promotion of the plantation sector domestically has been neglected, as its nodal agency, the commerce ministry, has been more focused on exports.

Promotion of products domestically is left to the industry or the ministry concerned. Unfortunately, the plantation industry does not have another ministry that could deal with domestic promotion and consumption, as is the case with steel or chemicals, said Sethna.

"Our nodal administrative ministry is the commerce ministry, as defined in the commodity acts. Therefore, all matters pertaining to development of the plantation industry and all marketing come under the ministry of commerce. But the commerce ministry has only looked at exports."

He said, in the case of tea, coffee and spices the ministry must now "take a fresh look at domestic promotion. If these industries are to be stabilised, the domestic market must be the foundation for them in the future," he added.