Injustice done to bulk coffee and tea exporters: UPASI

UPASI, the apex body for growers of plantation crops, today demanded that the government should reconsider its decision to reduce the incentives on bulk exports of tea and coffee under the new foreign trade policy.
The United Planters' Association of Southern India (UPASI) is an apex body of planters of tea, coffee, rubber, pepper and cardamom in the Southern States of India.
The association expressed concern over reduction made to incentives for bulk exports of tea and coffee under the Merchandise Exports from India Scheme (MEIS).
The plantation industry, which is reeling under high cost of production and low prices, has been further affected due to reduction in the incentives for bulk exports of tea and coffee from 5 per cent provided under the Vishesh Krishi Gram Udyog Yojana to 3 per cent under the MEIS, UPASI said in a statement.

While the new Foreign Trade Policy has attempted to simplify the procedures involved in exports, UPASI President Vijayan Rajes said the coffee and tea plantations would be hit due to reduction in incentives for bulk exports by 2 per cent.
UPASI would be approaching the Commerce Ministry to rectify the "injustice done to the bulk coffee and tea exporters", Rajes said.

He noted that the majority of coffee and tea exports were in bulk form and shifting to value addition or packaged form was not feasible as importers demand these two products in bulk for value addition.
Moreover, he said certain countries discourages imports of value added products by imposing additional tariffs.

The association also expressed concern over low rubber prices on account of high imports.
The rubber sector, devastated by the lower prices due to unrestricted imports, was expecting increase in the import duty from the current 20 per cent to at least 25 per cent in the Union Budget, but the Centre ignored this important plantation sector, Rajes said.