The Hindu Business Line : `Bright outlook for plantation sector'

FOR the first time in three years, the outlook for plantation crops — tea, coffee and rubber — is ``bright and hopeful'', said Mr L.V. Saptharishi, Additional Secretary, Commerce Ministry, speaking to presspersons in Bangalore on Friday.

Rubber prices are looking up and are now in the region of Rs 43 per kg of standard grain compared to Rs 30 per kg in 2001. Rubber exports from India have also registered a ``significant performance'', as the recession in the global tyre sector is easing and driving a spurt in demand for natural rubber. India exported 45,000 tonnes of rubber this financial year (2002-03) compared to 8,000 tonnes the previous year. Rubber was never an export commodity, but is now being positioned as one, Mr Sapthrishi said.

In the case of tea, ``we hope to achieve an export target of 196 million kg during the year,'' he said. Coffee exports are expected to remain in the same range as last year around 2.13 lakh tonnes despite the shortfall in production this year.

Tea prices too have showed an improvement in the last two to three weeks after the new rules about marketing tea came into force. The amended Tea Marketing Control Order has done away with the regulation that required growers to sell 75 per cent of their produce through public auctions.

The international coffee situation was also a little better, with an anticipated lower production in Brazil. Brazilian crop shows a sharp biennial trend and this is the country's ``off'' year, explained Ms Venkatachalam.

Official estimates put Brazil's production down to 24-29 million bags from last year's 47million to 48 million bags. With consumption steady at 109-100 million bags, this leaves a shortfall of 5 to 6 million bags. However, there is confusion over the exact amount of stocks carried over from previous years and some estimates put it at 45 million bags.

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