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Tuesday, Jan 10, 2006


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Aid for trade

This is with reference to the article, "The salt and pepper of `aid for trade'" (Business Line, January 3).

I differ with the author's observation regarding the consumer benefit.

The consumer, in fact, becomes a scapegoat in the whole process.

Pepper used to fetch Rs 280 a kg for the Kerala farmer.

The `tender' leaves, which is the basic raw material for all types of tea, fetched a farm gate price of Rs 15 a kg.

This has dropped to Rs 2-4 a kg. Coffee beans fetched a farmgate price of Rs 140 a kg. It has now gone down to Rs 12-25 per kg.

This drastic fall in the prices has not been reflected in the market price of any of these products. Moreover, the price of the end-product has gone up, which means the consumer has not benefited.

The author has rightly exposed the manipulations and machinations by external forces and vested interests and the plight of the poor farmers, who are at the mercy of global trade negotiations.

M. C. George

Cochin

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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