Plantation to get Rs 3000 cr in 11th Plan

Union Commerce Minister Kamal Nath today announced Rs 3,000 crore allocation, which is almost three times higher than the 10th Plan funding, for the plantation sector during the 11th Plan period.

Addressing the Upasi convention in Coonoor, the commerce minister also announced the setting up of a committee to determine the pricing mechanism for small tea growers and the formation of a special purpose vehicle (SPV) to encourage the plantation sector to earn carbon credits.

The plantation sector was dominated by small growers to the extent of 60 per cent. The industry directly employed 20 million people and contributed 9 per cent of agricultural exports.

The demographic landscape of the plantation industry was fast changing. The sector, which had 5 per cent of small growers 12 years ago, now constituted 22 per cent, the minister said.

He said the committee for the price mechanism would be formed within two weeks and would be asked to submit proposals within a short time.

The committee would have commodity traders and growers as its members.

Without committing on the price, the minister said it was for the committee, which will draw ideas from the growers, to determine the pricing mechanism or come up with a minimum support price.

Commenting on denial of carbon credits to the plantation sector under the Kyoto Protocol, Kamal Nath agreed that plantations were repositories of green houses and called upon the industry to form a special purpose vehicle to claim carbon credits.

Board's agenda

In an effort to make the Indian coffee cultivation sustainable, the Coffee Board has submitted a proposal under the 11th Plan to develop new technologies and techniques.

Addressing the Upasi meet in Coonoor today, Coffee Board Chairman G V Krishna Rau pointed out that low-cost producers were eating into the country's share in the global coffee market.

"The Board has submitted three schemes under the 11th five-year plan. The schemes are aimed at addressing and developing technologies to make coffee cultivation sustainable, improving transfer of technology, developing infrastructure in R&D and evolving appropriate tools to improve labour productivity," Rau explained.

Several other schemes have also been launched to protect the interests of coffee growers. Rainfall Insurance Scheme for Coffee Growers (RISE) is one such scheme.

A weather risk management tool, implemented by the Agriculture Insurance Company with 50 per cent subsidy for small growers on the premium, provides payout against deficit rainfall in blossom and backing showers and excess rainfall during the monsoon rains.