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| 'Plantation needs structural change to compete globally' |
| BS Reporter / Chennai/ Bangalore Sep 11, 2010, 00:56 IST |
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The Indian plantation sector should sort out the structural issues faced by the industry to increase its share in the global market.
“There are structural issues plaguing the plantation sector like low productivity, less mechanisation, shortage of labour among others. We need to sort out these issues to make our industry competitive in the global market,” Anand Sharma, Union Commerce and Industries Minister, said here at an event to distribute certificates to farmers who benefited from the debt relief package announced by the government.
The government had approved implementation of the coffee debt relief package 2010 for the debt-ridden small coffee growers recently and has a financial provision of Rs 263 crore.
Sharma said, the government has already appointed two committees to look into this matter and was expected to submit its report soon.
Plantation crops like coffee, tea, rubber, pepper, cardamom among others are facing tough competition from low cost producers like Vietnam, Philippines and other South East Asian nations.
These nations have fast adopted mechanisation with better resource mobilisation to increase their global share in these commodities.
“We were aware of the difficulties faced by small planters during the global slowdown. So, the government came up with the debt relief package. If need arises, we will look for other measures,” Sharma said.
He also said that the government would try to extend the present benefit to medium and large growers.
Presently, the debt relief package covers 75,000 growers of the 78,000 small growers in the country and was very successful in its implementation, he added.
India is estimated to produce 308,000 tonnes of coffee in the next crop season. Coffee consumption is also growing in recent years with an average annual growth rate of around 6 per cent per annum.
Domestic consumption has reached 94,000 tonne during 2008 up from 60,000 tonne from 2,000. As per estimate of Coffee Board, it is expected to reach 100,000 tonne in the present year.
“Consumption is showing a upward trend in the domestic market and we expect to sustain this level. However, on export front, Indian coffee has to look for new markets barring traditional market,” he said.
Jawaid Akhtar, chairman of Coffee Board said that the board was taking various steps to increase production and productivity of coffee in the country.
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