Allow plantations to use minimum land holdings for alternative crop cultivation, agroforestry: APK Chairman
Association of Plantations of Kerala (APK) has been urging the government to allow plantations to use minimum 30 per cent of land holdings to carry out crop cultivation, agroforestry, renewable energy generation and other agriculture-based activities. This would generate skilled and semi-skilled job opportunities and add to the State’s revenue, says Prince Thomas George, the newly-elected chairman of APK.
India, he says, is importing more than ₹40,000 crore of timber on a yearly basis and agroforestry can play a big role in providing a vital alternative source of income to the grower and save foreign exchange. Edited excerpts:
APK has been demanding permission to use more than 5 per cent of plantation land for alternative crops to tide over the current crisis. Are you planning any interaction with the government on this issue?
We have been practising mono crop culture for more than a century. The globalisation of commerce has made it financially unviable now. It will be difficult to have large-scale manufacturing industries in the Western Ghats. The only practical choice is to have agro-based economic activities. Plantations are the right fit for that. However, with the current statutory constraints, the plantations are unable to explore the immense economic potential available.
The year 2023 has seen tea prices going south. How has this impacted the tea sector in Kerala and what measures is APK mulling to tackle it?
South Indian Tea prices are on a downward spiral post Covid with the average price hovering around ₹112/kg in 2023. During the second half of FY24, it does not look like there will be any significant improvement in prices due to the tense geopolitical situations, which has affected exports to traditional markets like Iran, Russia and other West Asian regions, etc.
Tea plantations in Kerala are the worst hit due to the very high cost of production and declining tea prices.
After the recent long-term wage settlements for the workers and staff, the average cost of production is around ₹190/kg. Majority of the tea estates in Kerala are facing severe cash flow crises. One should not be surprised if some estates are closed or abandoned. All possible cost reduction measures, without affecting productivity, have been taken by the plantations. Now, the only possible route available to the grower to reduce cost is to further cut inputs, which will be detrimental and affect production drastically.
We feel that a comprehensive financial support package is the need of the hour. We have been pleading with the government to take over social costs, which are the basic responsibility of the Local Self Governments.
The tea replanting subsidy, quality upgradation scheme for factories and the Orthodox subsidy should be reinstated by the Tea Board to ensure that developmental works with regard to investments in field and factory can be undertaken.
With rubber prices remaining low and delay in getting the amount from the price stabilisation fund, many growers seem to be losing interest in tapping the commodity. Also, the northeast rubber sector is getting more incentives like higher amounts for replantation and other investments. How do you plan to deal with these issues?
The estimated weighted average price of rubber in 2023 has been around ₹145/kg, which is lower than in 2021. As the prices are below the production cost, many growers have left the fields untapped. It is true that the Rubber Board and the Union Government are focussing on NE states. Our only concern is that the traditional areas should not neglected.
The price support mechanism should be extended to all growers, irrespective of the size of land holdings. The large growers are devoid of any subsidies for replanting or any other cultural operations. We are of the opinion that all the rubber growers are treated equally.
Do you foresee any threat in rubber production from the northeast in the long run hitting domestic prices?
As there is disparity between the production and consumption of NR in India, we do not foresee any threat. However, we estimate that the cost of production in NE is much lower than that of Kerala, which may have some impact in the future.
In the rubber sector, the growers have been demanding a higher support price of ₹250 per kg. Does APK subscribe to this view?
The production cost has been on an upward spiral since FY21. There is no commensurate increase in prices. Climate change has significantly affected agricultural operations, production and productivity. To keep rubber cultivation as a remunerative vocation, the demand of ₹250/kg as the support price is justifiable.
Cardamom output has increased but the cost of production has also gone up. There is a view that there is widespread use of sub-standard pesticides that has affected the exports. What is the solution?
As I said earlier, the cost of production has gone up significantly across all crops, including cardamom. The cost of vital inputs has risen more than 200 per cent during the last three years. Due to the erratic weather pattern of the last five years, the pest and diseases incidences have increased, which warrants judicious use of pesticides and fungicides.
Generally, the growers use pesticides and fungicides as per the recommendations of the authorities concerned. There were some deviations which happened earlier due to lack of awareness among growers. We feel that the Spices Board and the State agricultural departments should start field campaigns from time to time to educate growers. If we are able to get residue-free cardamom we will be able to export substantial quantities to Saudi Arabia. The Spices Board, along with the Union Government, needs to promote domestic consumption as Indians are having higher disposable income. This is one crop where Kerala has a 92 per cent market share in the country.
How has climate change in the last few years affected the plantation sector in Kerala?
Plantation Sector, especially in the Western Ghats is facing the ill effects of climate change. It has detrimentally affected our financial viability. Change in pattern of monsoons, delayed onset, high intensity- low duration rainfall, extended drought period, unseasonal rains, high diurnal temperature are the visible changes. The effect is loss of production and productivity, increased pest and disease attack, drop in quality of produce etc. are affecting the financial viability of this sector.
What are the main issues APK is planning to raise before the Plantation Directorate once the functioning goes into full swing?
We have lots of expectations from the Directorate and we are confident that they will do justice to it. The Directorate has commissioned a study for revamping and possibilities of diversification in the plantation sector by Indian Institute of Management, Kozhikode. The directorate should take initiatives to solve the issues plaguing the sector for decades.
We are of the opinion that the priority should be to address the legal impediments hampering the development of the sector. They should also devise schemes for rejuvenating, revamping and modernising the sector as it is crucial for the overall economy of the State.
Published on December 5, 2023