The United Planters Association of India (Upasi) has termed the plantation workers demand for a ₹500 wage increase as “unrealistic”, saying it comes at an inappropriate time when the sector is at cross roads with un-remunerative prices and high production cost.
According to Upasi President N Dharmaraj, plantations in south India are not against paying higher wages but the current economic realities coupled with the plethora of taxes and levies does not make it a viable proposition.
“In case it is forced upon, without considering the capacity of the industry to pay, it will lead to the collapse of this sector,” he said, while briefing the media here on the current status of the plantation industry.
“Today the government levies additional agriculture income tax and it is as high as 50 per cent in Kerala compared to 25 per cent levied by the Centre on MNCs. Besides, ₹700 per yielding hectare is levied as plantation tax whereas this tax does not exist in other States,” he said.
The need of the hour, he said, is to bring down production cost, enabling plantations to sustain without compromising on the wages to workers. Expressing surprise at the recent developments in Munnar, Dharmaraj pointed out that talks for fixation of wages are in progress, as the last wage settlement ended in 2014. There has been a 12-13 per cent hike given to workers in the last 30 years, he said, adding that the south Indian plantation worker is one of the best paid agricultural workers in the country.
K Kurian, Chairman, Karnataka Planters Association, said that any increase in wages will have a far reaching impact on the sector, as labour constitutes 50 per cent of the production cost compared to other sectors. Besides, the issues connected with climate change pose a very serious problem leading to production loss, increase in pests and diseases to crops forcing the management to add cost to counter the menace.