Business Daily from THE HINDU group of publications Wednesday, Jul 05, 2006 |
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Agri-Biz & Commodities
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Coffee Plantation woes Coffee growers feel the pinch of labour shortage M.R. Subramani
Chennai , July 4 For coffee planters, the current improvement in prices is a welcome phenomena, particularly after drop in prices for the last five years. But they are faced with a peculiar problem - lack of labour. Coffee plantations are now in need of farm hands, who now find remunerative employment in infrastructure and mining projects, besides carrying out farming in their own lands which are rain-fed. "We need labour mainly during harvest between December and April. After that too, we need them for other work. But we are not able to get the required men and that is now adding up to our input costs," says Mr Bose Mandanna, a planter in Kodagu region of Karnataka and former Vice-Chairman of Coffee Board. If the planters had to pay Rs 80-90 for a day's work to farm hands earlier, now they have to pay Rs 100-110. "We have to pay even more. Not only that, we have to pay higher commission for the agents who get us the labour and have to arrange for free food," says Mr A.K. Bhandari, former president of the United Planters' Association of Southern India (Upasi). "Labour supply has become tight. People used to come to the plantations from North Karnataka and even Tamil Nadu. Now, even that is not available," says Mr Ramesh Rajah, President, Coffee Exporters Association of India. The coffee estates used to get farm hands from areas such as Hasan, Kodagu, Shimoga and Dharwad but now, availability from these places is very low, says Mr Mandanna. Most of the infrastructure projects are nearer to these farm hands' home and besides, they are getting free food. Mr Bhandari says arranging for free food could be possible for infrastructure projects but in the case of plantations, it is difficult. "For infrastructure projects, food preparation is centralised for say, over 100 people. That is not possible in the estates since the needs vary. Some may need 10 or 12, some 25 and some even less," he says, adding in such circumstances, food preparation is a tough call. On the other hand, with monsoon being good in the South, particularly Karnataka, in the last two years, some of the farm hands are tending to their small holdings. "Dry land farming is flourishing in view of good monsoon, including this year. We expect things to be tough for harvest in December this year," says Mr Bhandari. "The completion of the Uttar Kanara project has improved irrigation facilities and it is helping small land holders, who would have in the normal course moved to the plantation for work," says Mr Rajah.
Transportation
Besides having to foot higher wage bill, the coffee estates have to also pay for the transportation of these workers. "Estates have now to spend a little more on transport also," Mr Mandanna said. "It is not the question of paying higher wages but getting the required hands," says Mr Mandanna.That has now forced them to look for labour from North India. Apart from increased labour costs, coffee estates are having to pay more for copper sulphate and diesel. The price of copper sulphate, mixed with lime and sprayed to prevent disease on plants, has doubled to Rs 1.5 lakh a tonne from Rs 75,000, while diesel prices have recently been raised.
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