Financial Daily from THE HINDU group of publications
Wednesday, Sep 21, 2005
Financial Daily from THE HINDU group of publications Wednesday, Sep 21, 2005 |
|
|
|
|
|
Agri-Biz & Commodities
-
Plantations UPASI chief calls for `change in thinking' L.N. Revathy
Coonoor , Sept 20 A PARADIGM shift in thinking within the prevailing economic architecture is the need of the hour, according to Mr Anil Kumar Bhandari, President of UPASI. Stating that this shift in thinking has never been more evident than at present, Mr Bhandari, who was presiding over the 112th Annual UPASI Conference, said the industry had virtually crippled not merely because of the global surplus in tea, coffee, and spices, but because of the failure in restructuring the sector adequately. In this context, UPASI has prevailed upon the Government to amend the regulations and laws that govern the industry to meet the challenges of unfettered competition and free trade. "There is a need for a major restructuring of the plantation industry almost from every facet. No sacred cow should be left untouched," he said, and appealed to the Commerce Minister, Mr Kamal Nath, to set in motion a set of events that would "in a definite timeframe" restructure the sector. The most important restructuring effort should be in tackling the regulatory and legal framework. The Commodity Acts, the Plantation Labour Act, the Land Reforms Act of the States, and the Minimum Wages Act would be a few that need drastic overhaul. These laws were inspired by a completely different economic, political, and social mindset that does not exist today. "As long as they continue to exist in the current form, no amount of intervention by the Government to stave off or ameliorate frequent crises." The Plantation Labour Act, he said, was enacted when plantations were more isolated tropical rain forests than established agro-businesses. The Minimum Wages Act was one of the most misused pieces of legislation. "But the State Governments that administer this Act have consistently used it as a political tool in their hands." He cited certain instances where the State Governments had notified a wage that managements had clearly been unable to pay and which the workmen would not have asked for under the collective bargaining system. "There are some other areas in the gamut of regulations that need urgent review." The other area that the apex body of plantations in the South perceives would need an overhaul is in the rationale behind the planning for and development of this industry. "We need to move from the soil to the marketplace and that is where we need to concentrate." He conceded that the task of restructuring and stabilising the industry would be an extremely daunting one, but assured necessary support. Responding to Mr Bhandari, the Union Minister of State for Commerce and Industry, Mr E.V.K.S. Elangovan, who inaugurated the conference, said that he would place the issues for Mr Nath's consideration. He failed to touch upon any specific issue, but merely stated that the Tea Board would be reconstituted within 2-3 weeks. He admitted that price levels of commodities such as tea, coffee, cardamom, and pepper continued to drop and called upon the industry to gear up to face the challenges.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
