The Hindu Business Line : 5 pc land is of little benefit, say Kerala planters

THE ailing plantation industry in Kerala, while welcoming the State Cabinet's decision to permit it to use 5 per cent of the estate land for diversified activities, said that extent of area allowed now would not be sufficient for viable diversification.

Given the fragile financial condition of the plantation industry in the State for the past few years, the State Cabinet on Wednesday decided to permit plantation managements to utilise 5 per cent of the estate land for diversified activities such as tourism and cultivation of medicinal and flower plants.

"It is a step in the right direction," a senior source in a major plantation company told Business Line. However, he said, for any diversified activity 5 per cent of the estate area would not be sufficient as it would be economically unviable.

In fact, the Government should have allowed this sector to utilise at least 20 per cent of the total area. "Only then will it become viable," he said.

For the past six years, the Association of Planters of Kerala has been urging the Government to amend the Land Reforms Act 1963. In fact, the Land Reforms Committee in its first report to the Government had suggested to make amendments to the Act by exempting cashew, vanilla and medicinal plants from the ceiling limit, Mr Dominic J. Mechery told Business Line on Friday.

He said that APK had been requesting the Government to permit the use of 20 per cent of the total area for diversified agricultural activities, as it would help plantation companies earn some supplementary income from diversified activities when the main crop failed.

This would also help the company to ensure job security for the workers. Therefore, the trade unions had also favoured the Cabinet decision, he said. The tea and coffee plantations were facing a serious crisis for the past five to six years, he added.

He said that while suggesting the amendment, the Committee had observed that the traditional plantation crops were in a crisis due to oversupply and low price. Vanilla and medicinal plants were two crops, which would grow well in Kerala and could fetch better returns in the long run, he pointed out.