Plantation commodity producers told to focus on value addition

As overseas demand grows for Indian plantation commodities, the growers were told to focus more on value addition and processing for better realisations.

Addressing the 131st Annual Conference of the United Planters Association of Southern India (UPASI) in Coonoor on Saturday, Neeraj Gaba, Director, Plantations, Commerce Ministry, told the producers to look at more processing and value addition of plantation commodities to seek better realisations.

Stating that still 85 per cent of the Indian tea is sold as bulk tea in the overseas market, Gaba exhorted the producers to look more at processing and value addition, which is important to move up the value chain. About 50 per cent of the spices are exported in value added form, while it is 35 per cent in coffee, he said.

Gaba stressed upon the need to promote the commodities and said the industry should take the lead. He also said there is a significant increase in the allocation to the sectors such as tea and coffee and the new schemes for the sectors will be focused on technology adoption among others.

Earlier the outgoing UPASI president, C Shreedharan said the Commodity Acts and Boards were instrumental in the growth story of the plantation sector since Independence in terms of augmenting area under the plantation crops as also its production. “Given the changed circumstances, there is a need to embrace measures for augmenting productivity to be cost-competitive and improving the quality of the product. In this context, we understand that the Commodity Bills are in advanced stage for its introduction in the parliament, the primary objective being moving away from licensing regime to registration regime. The new acts, on which UPASI had given its detailed comments, should make it more relevant to the present-day context and create a conducive environment for ease of doing plantation business,” he said.

Further, Shreedharan said the Boards also need to redefine themselves as a facilitator and knowledge centre for the betterment of the plantation industry, which is the way forward. He also said there was a need for adequate funding for research, post-harvest management and marketing/branding. This is in line with the vision of the Government on increasing the R&D expenditure in the country from the existing 0.7 per cent GDP to 2 per cent of GDP.

“As market development is turning increasingly knowledge-based, the Boards if required, may have to outsource some of these tasks in the interest of improving market performance. This can lead to quick decisions in the fast-evolving market space and showcasing of products in a more professional way with the support of stakeholders,” he said, adding that stakeholder associations like UPASI should be given representation in the commodity boards which would facilitate its functioning and enhance the scale and scope in various activities that they undertake.