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Agri-Biz & Commodities - Plantations
States - Tamil Nadu
Planters' assn to discuss problems facing sector

L.N. Revathy


Industry woes
Govt must initiate remedial measures for the tea sector.
Industry bogged down by production costs, taxation.
Developing countries, including India, ignore the agriculture sector and rural economy.

Coimbatore , Sept. 8


Is the plantation sector a `sunset industry'? Would investment in plantations be a viable proposition? These questions appear to be looming large among industry stakeholders, particularly in the light of the recent walkout by HLL from the tea plantation, following Tata Tea's exit last year.

Do these developments indicate the scepticism about the future of the plantation industry in India?

These and other issues that afflict the future of the plantation sector are to be discussed during the 53rd annual conference of the organisation of producers in the South - The Planters' Association of Tamil Nadu - at the UPASI Hall in Coonoor on September 9.

Industry stakeholders believe that the tea sector is in deep trouble and would be unable to come out of its current prolonged crisis unless and until some long-term remedial measures are initiated by the Government to bail it out.

Bogged down by rising production costs and the taxation structure, the industry has sensed the need for suitable amendments in the Land Reforms Act, permitting conversion of plantations and diversification of crops to augment income and development of plantations.

It has identified eco-tourism, floriculture and horticulture as potential growth areas.

Further, the recent decision of the State Government to classify village panchayats in plantation areas as town panchayats would jeopardise the industry, sources said.

They added that developing countries, including India, ignore the agriculture sector and rural economy, while developed nations protect their farmers with trade-distorting subsidies for agriculture.

Mr S.R. Arumugham Thondaman, Sri Lankan Minister for Youth Empowerment and Socio-Economic Development, will inaugurate the conference, while the Deputy High Commissioner for Sri Lanka in Southern India, Mr P.M. Amza, will be the guest of honour.

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