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G. Srinivasan

Jairam Ramesh on the Centre's plans for the region

New Delhi March 19 People in the north-eastern States have always felt alienated from the rest of the country, set apart and virtually isolated by the vast geographical divide. The Centre has always made efforts to tailor policies to provide all sorts of incentives for the development of this important region, particularly in view of its strategic location bordering neighbouring countries in the sub-continent.

The Department of the North Eastern Region (DoNER) has of late emerged as the focal point for ensuring the uniform development of the eight north-eastern States. Efficient utilisation of resource endowments, particularly commercial crops, holds out promise for transforming the North-East Region over the long haul provided the plans and programmes meant for this region are indeed implemented with commitment.

At the initiative of the Minister of State for Commerce, Mr Jairam Ramesh, a high-level delegation led by the Union Minister of Panchayati Raj, Youth Affairs and Sports, Mr Mani Shankar Aiyar, held the third sectoral summit of the North-Eastern Council (NEC) at Guwahati on March 9.

Explaining the agenda and outcome of the summit, Mr Jairam Ramesh told Business Line: "For the first time, there was an interaction in a systematic way between the North-East State governments and the Commodity Boards — comprising tea, coffee, spices and rubber — and the Agricultural and Processed Food Products Export Development Authority (APEDA). ; the Central Silk Board and the Directorate of Handlooms and Handicrafts do not come under the Commerce Ministry.

"Many of these boards (such as spices and rubber boards) tend to be Kerala-centric, while the Coffee Board is rather Karnataka-centric. A feeling has gained ground over the years in Assam and other north-eastern States that though this geography accounts for 55 per cent of India's tea production, the Tea Board has not really looked after the region's interests.

Rubber output

"Nine per cent of the country's rubber production comes from the North-East and above 82 per cent from Kerala, where the limits of area expansion have been reached and further expansion has to come from productivity enhancement. India is one of the fastest growing consuming markets for natural rubber and if we don't increase domestic production, we will end up being a major importer of the commodity.

"The only place where natural rubber expansion can take place in terms of cultivation is the North-East. Rubber has huge potential to transform the region economically. Against a potential of 4.5 lakh ha in the North-East, the present area under rubber plantations is just 13 per cent. Rubber is a major thrust area for the geographical belt in the 11th Plan (2007-12). With immense possibilities to increase the area under rubber in Tripura and Assam, the States could also benefit greatly from setting up downstream (processing) industries.

"As regards coffee, only 5,000-10,000 tonnes is produced in the North-East, largely in Mizoram and Nagaland, and hence, has limited relevance for the area.

Scope for spices

Spices hold immense potential, particularly organic ginger, chilli and black pepper, both for expansion of production and marketing.

"ITC has identified Sikkim, Nagaland and Meghalaya for undertaking cultivation, processing and marketing of cardamom, naga chillies, ginger and turmeric. A tripartite agreement involving ITC, Spices Board and the respective State governments is to be concluded shortly.

"In the export of tea, the share of the North-East is lower, as South India accounts for over 50 per cent of Indian tea, though the former accounts for 55 per cent of the country's tea production. In 2006, there was a breakthrough in that over 2 million kg of tea from Assam was exported to Pakistan. The Tea Board has assured that in three month's time, a logo for Assam orthodox tea and a Geographical Indication (GI) would be announced.

"APEDA is in the process of establishing cold storages at the airports in Guwahati, Aizawl, Imphal, Dimapur, Agartala and Bagdogra. The process can be expedited with the active involvement of the respective State governments. To complete the cold chain from the field to the point of export, APEDA is working with a logistics firm through Concor.

"The four Agri Export Zones in the North-East, prioritised on the basis of their potential and stage of implementation, include pineapples (Tripura), ginger (Sikkim), orchids and cherry pepper (Sikkim) and fresh and processed ginger (Assam). These four AEZs are expected to be operationalised by this December.

"Finally, the Department of Commerce will take a fresh look at the staffing pattern under all the Commodity Boards in the North-East to add to the professional strength and shore up the field offices. Specific Export Promotion Councils are to be firmed up in the next round of discussions, particularly for shellac and minor forest produce. The main point is to start the process of institutionalised interaction between the State governments."

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