The Hindu Business Line : Govt urged to take steps to revive plantation sector

THE ailing plantation sector has urged the Government to set in motion certain structural changes - both legal and regulatory - and a development and marketing strategy, accompanied by a massive domestic generic promotion project without further delay.

While admitting that the Union Cabinet and the Ministry of Commerce had extended timely and much needed help, industry sources lament that they were more in the form of "emergency first aid rather than holistic corrective surgery. They addressed some of the symptoms (issues) but left the disease (critical/vital issues) largely untouched."

The UPASI delegation under the leadership of its President Mr E.B. Sethna met the Union Minister for Commerce and Industry, Mr Kamal Nath, to seek his personal intervention for setting in motion the process that would usher in stability in the long-term.

The association has proposed a massive domestic generic promotion project to be initiated jointly by the Government and industry. "Taking into consideration the size of our nation and its complexity, this project would involve at least Rs 1,000 crore a year for three years before the amount is reduced to a maintenance and promotional back-up programme over the next two to five years. This programme of generic promotion of plantation commodities should not be restricted to mere advertisement and promotion," Mr Sethna added.

On structural reshaping, the association has stressed that creation of political climate and administrative mechanism to tackle the issue would not do. The industry perceives that the personal intervention of the Minister alone would help in accomplishing the task.

Structural change in the plantation industry falls under two basic areas. A change in the regulatory and legal structure binding the industry being one and a change in the development and marketing strategies on the other.

Mr Sethna explained that the industry was largely bound by (a) The Plantations Labour Act (PLA), (b) The Minimum Wages Act, (c) The Land Reforms Act and (d) The Commodity Acts, apart from the Marketing Control Orders and the stipulations of the Essential Commodities Act, PF Act etc.

While the Government recognised the need to overhaul the Plantations Labour Act and the Commerce Ministry co-ordinated such an attempt with the Ministry of Labour, the association members expressed that the changes should go beyond the draft paper put out by the Labour Ministry.

"The first step must be taken in ensuring a flexible labour policy while providing a safety net for the plantation labour. The plantation industry unlike urban industrial undertakings is charged under the PLA with providing virtually cradle to post-retirement benefits at its cost to labour. Apart from making the Act more flexible, the Government must also participate fully in funding the social welfare programmes that are now being performed by the plantation industry at their cost."

On the Minimum Wages Act, UPASI has demanded that the law be amended to articulate the basic principles governing minimum wages and then make the process of computing the wage transparent.

The association communication to the Minister also notes that the briefs given to the Commodity Boards under the Acts were anachronistic in purpose and static in practice. UPASI has requested that these Acts be overhauled with the new imperatives in mind.

Reverting to the generic promotion programme, Mr Sethna pointed out that it would be impossible for the industry to undertake such a gigantic scheme with its own resources. "It has to be Government funded but there should be significant industry representation and decision making powers for the industry in the agency or body that implements this programme. The government must create a separate agency for this task and not entrust it to the Commodity Boards," the association suggested.

The Minister, according to UPASI sources, has promised to look into the proposals and call a joint consultation soon.

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