The Hindu Business Line : UPASI conference, a low-key affair

If the presence of the Pakistan tea delegation and the maiden Golden Leaf India Awards event made the 52nd Annual Conference of the United Planters Association of Southern India (UPASI) a memorable event, the 53rd annual conference of UPASI on September 16 could be considered a low-key affair.

Industry stakeholders maintain that "all is not well with the plantation sector", but come September, industry captains, association members Kerala, Karnataka and Tamil Nadu converge in the hill-town of Coonoor to commemorate the occasion.

With just a day left for the 53rd annual conference of UPASI, the members are gearing up to draw the attention of the powers-that-be to the industry's plight and suggest remedial measures for a better future.

The industry has matured. It is convinced that short-term benefits in the form of subsidy, interest waiver on loans and other concessions would not suffice and there is a need to look much beyond these such as enhancing the share for Indian plantation commodities in the domestic market and international arena, making structural changes in the reforms process, necessary amendments to the Land Reforms Act etc.

The industry feels that there is an imperative need to modify the obsolete labour laws, as there is no justification in continuing with them. At this juncture, the traumatic years for rubber, coffee and pepper appear to have got over but the tea sector, as industry sources state, "is still groping under duress".

The improvement in tea price levels does not seem to have helped planters wipe out their losses, settle the wages in full or remit the statutory dues. Industry sources admit that the slight surge in the price is due to the Kenyan drought. Uncertainty looms large as planters fear that they may not be able to sustain these markets when Kenya recoups production.

However, a vibrant domestic market would help the industry to absorb the impact of fluctuations in the global market. A fresh impetus is needed to boost domestic consumption and an appropriate positioning to showcase and project the Indian teas and coffees globally. While efforts were already on in this regard, events like the India International Coffee Festival (planned for February 2007) and the India International Tea Convention in June 2007 would go a long way in attracting global interest.

A fully tapped domestic market would bring a sense of stability in the marketplace. Also the industry now realises the fact that there is a need to raise the export market by unit value rather than quantities. The rejuvenation packages recently announced by the Commerce Ministry, when fully implemented, would definitely help raising the competitiveness of the industry by improving productivity among others.

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