The Hindu Business Line : Plantation crops bring cheer to growers

Decline in production when the demand is on the upward move had pushed up the prices of natural rubber, coffee, cardamom and pepper. Whereas, in the case of tea despite drop in production the prices of this cash crop rather declined instead of moving up in 2007.

Indian tea output dropped by 20.2 million kg during January – October 2007 to 802.6 million kg (mkg) from 822.8 mkg in the corresponding period in 2006.

COFFEE

The coffee growers were at an advantageous position in 2007 and the emerging situation in 2008 is also likely to add more to their enthusiasm. The global output in 2007-08 is estimated at 118.66 million (60 kg) bags against 131.32 million bags in 2006-07 and that in turn is likely to push up the coffee prices.

The Indian coffee output in 2007-08 is estimated at 4.75 million bags compared to 5 million bags 2006-07. Consequently, the exports are also to decline to 3.4 million bags from 3.67 million bags in 2006-07.

Prices during the year remained at moderately higher levels. Price of other Milds was swinging between Rs 111 a kg and Rs 121 during January–November 2007 except for April, May and June when it was in the range of Rs 100.77-106.78. As on December 17, the price was at Rs 121.27 a kg. The average price in 2006 was Rs 113.70.

The price for Robusta was also dwindling between Rs75 and Rs 86 a kg during January – November this year. The latest price as on December 17 was Rs 81.97 while the average price in 2006 was Rs 70.43.

Thus, the coffee, after few years of crisis is on a strong path of recovery.

RUBBER

The most successful plantation crop in 2007 is natural rubber which has an unprecedented rise in price during the year with an average price of Rs 91.25 a kg for RSS IV as on December 17 against the average price of Rs 87.83 a kg in 2006.

Increase in demand for natural rubber consequent to the growth in the automobile manufacturing sector has pushed up its prices during the past couple of years. Mismatch in demand and supply in global market has also pushed up the international price of the commodity in 2007.

The Indian output in 2007-08 is estimated at 8.19 lakh tonnes against 8.53 lakh tonnes in 2006-07. The consumption is estimated to increase to 8.57 lakh tonnes from 8.20 lakh tonnes in 2006-07.

The stocks as on September 30 last are estimated at 81,195 tonnes.

The break-up is as follows: growers 22,490 tonnes, dealers and processors 17,700 tonnes and manufacturers 41,005 tonnes.

Thus, the natural rubber sector was well placed in 2007 and year 2008 is also appears to be brighter for it.

PEPPER

The Indian pepper growers also had a good time in 2007 with the prices remaining at moderate levels. However, it failed the expectations of many that the prices might cross Rs 250 a kg as had happened a decade ago in 1996-97. However, on an average it remained by and large above Rs 120 a kg during the year.

Exports also during the year had shown a substantial increase.

As against 18,405 tonnes valued at Rs 181.49 crore during April-November 2006 the shipments in the same period this year went up to 24,250 tonnes valued at Rs351 crore. The unit value realisation shot up to Rs 144.74 a kg this year from Rs 98.61 last year. The total output in 2006-07 was estimated at around 50,000 tonnes and that in 2007-08 is also projected to be somewhat at this level. Unlike other producing countries Indian domestic consumption is so high that almost 90 per cent of the current production would be absorbed by the internal market. This phenomenon keeps the Indian prices always at higher levels than that of the world market.

Tight supply position is predicted for 2008 and hence the prices in the international market are likely to remain at above $3,000 a tonne.

CARDAMOM

Another plantation crop which had brought cheers to the growers after few years of price decline was cardamom. Probably, it is in 2007 the average price ruled above 450 a kg. Unlike in the previous years, there were not much fluctuations in the price in 2007.

Drop in output due to unfavourable weather conditions has pushed up the prices.

The production is estimated to be lower by 25–30 per cent from that of last year.

The high prices had, however, reduced exports which during April – November 2007 stood at 260 tonnes against 336 tonnes in the same period last year. The unit value realisation was up at Rs 435.87 a kg this year from Rs 319.64 last year.

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