Q&A: C N Nataraj, President, Upasi

'Replanting subsidy should include big planters'

The Indian plantation sector is at a crossroads as both, the acreage and productivity, are stagnant during the last decade. Also rising wages along with shortage of labour erodes the relative competitiveness of Indian produce in the global market, the new president of Union Planters’ Association of Southern Region (Upasi), C N Nataraj, tells Debasis Mohapatra the association’s strategy to resolve these issues. Excerpts:

The productivity and acreage of most of the plantation crops have stagnated in the last decade. What is your strategy to tackle this issue?
Yes, productivity of plantation crops is not rising due to erratic weather in the major growing regions. Also, ineffective pest control is damaging the crops. However, the productivity level has not dipped to an alarming level. Rather, this is the nature of these crop cycles. In Upasi, we want to emphasise on higher mechanisation with effective pest control to increase productivity. On acreage front, we want higher returns for planters, so that others will be entered into this business.

What about replantation of crops, which is perceived as one of the ways to boost productivity?
Replanting is now being done by most of the planters in all crops. Government is providing subsidy for this replanting operation. However, in crops like coffee, replanting subsidy is only limited to small and medium growers. We want this scheme to include big planters to increase productivity of crops like tea. However, labour shortage issues, also, have to sorted out to make this sector competitive.

Upasi is time and again raising the issue of labour shortage along with rising wages. How do you plan to tackle the issue?
More mechanisation seems to be the only solution to the labour shortage. Also, as plantation sector is the only sector to bear the employee welfare cost, we demand the government to work on a cost sharing model to relieve the cost burden on planters and will raise this issue shortly with the commerce minister.

Union Commerce minister, Anand Sharma recently stated that there is need of a structural shift in the plantation sector to make the sector globally competitive. What is your view on this?
Yes, there is a need for a structural shift in the plantation sector as conflicting interests are at work in the industry. Issues like labour shortage should be sorted out to sustain the competitiveness in the global market. If we have to compete with countries like Vietnam and other south-east Asian nations, we need to deliver quality at a competitive price.

But, is the emergence of Vietnam, Philippines and other south-east Asian nations a threat to India’s plantation sector?
I don’t think so. There is no threat to our plantation industry from these countries as of now. However, we have to check our cost structure to stay competitive in future.

Small planters are not able to get right price of their produce due to ineffective marketing linkage. What steps is Upasi taking to ensure fair price to small planters?
Small planters understand the market better today. They sell their produce after analysing the international and domestic prices. However, there are instances when middlemen are getting the maximum benefit. So, we are educating planters to understand the market through seminars. Also, the proposal for forming a Marketing Federation for small planters is being actively considered.