Upasi urges farmers to shift to jatropha

United Planters Association of South India (Upasi), a representative body of the coffee and tea growers, is encouraging farmers to diversify into growing bamboo and jatropha.

"Our (India's) wood and pulp requirements are met via 30 per cent imports. We also import oil. Diversification into bamboo and jatropha will help reduce our import bill," said JK Thomas, president, Upasi.

"We have requested the government to remove the land ceiling," he said on the sidelines of the 48th annual conference of Karnataka Planters' Association.

On August 24, the Planning Commission approved "in principle" a Rs 1,280-crore spend over five years for plantation of jatropha on 4,00,000 hectares of degraded forests and waste land to produce bio-diesel.

The commission had already earmarked Rs 50 crore in the 2005-06 budget to boost jatropha cultivation.

The Karnataka Planters' Association has requested the Centre to waive off a significant portion of the principal amount of Arabica growers along with interest under the Special Coffee Term Loan Scheme.

Chairman of the association SP Muthuraman, who was also present at the meet, said his association has also requested the government to consider 40 per cent subsidy under the Special Purpose Tea Fund, so as to help the industry in massive replantation.

The subsidy was reduced to 30 per cent due to intervention of the Planning Commission. The Tea Fund has not taken off in Karnataka due to the stipulation that tea worth 200 per cent of the loan value has to be sold at auctions and the state does not have auction centres.

This stipulation has hampered the replantation programme. As a result, the Karnataka Planters' Association has requested the government to remove this stipulation for tea growers in the state.

Amending the Plantation Labour Act, to remove the statutory obligations of providing free housing, medical, and educational facilities to the workers, is also on the wish-list of the association. It has also asked for reconstitution of the Coffee Board.

The planters' body has requested the state government to consider exemption of partnership firms from payment of agricultural tax, notification of 4 per cent value-added tax on coffee powder and French coffee, and directing co-operative banks to remove the ceiling of Rs 3,00,000 on loans provided at 4 per cent interest rate.