Crisis-hit south Indian tea industry seeks Govt. help
Monday, 10 November 2014 00:00
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The Hindu Business Line: The South Indian tea industry has sought immediate relief measures from the Government to safeguard plantations.
“The industry is in dire straits due to falling tea prices, steep increase in labour costs and rising fertiliser cost. If the Central and State Governments do not come to the aid of this ailing sector, tea plantations will have no option but cut down on all developmental works like replanting and cutting down on inputs, which in turn would have social repercussions,” says Vijayan Rajes, President of the United Planters’ Association of Southern India.
Stating that the current crisis is taking the industry back to the worst ever period the tea growers had since the beginning of this century, Rajes said: “Tea prices have nosedived by 17% during the year up to September. Wages, on the other hand, have shot up between 9 and 19% in the three tea producing States of Karnataka, Tamil Nadu and Kerala. The huge increase in wage cost has had no linkage to productivity as the plantation sector is additionally burdened with social costs such as providing housing, water, power and other infrastructural facilities for its workers, which works out to nearly 70 per cent of our total cost.”
“The recommendations and assurances given by many expert committees for reimbursing part of the expenses incurred for social cost still remain on paper,” he added.
In addition to these fundamental issues, the industry now faces a sinister campaign by certain foreign-funded NGOs of pesticide residues in tea.
This has further added to the woes of this sector, Rajes said and pointed out that the sector needs some respite to sustain and grow.
“No concession is being given to taxes and other levies. All that we seek in this hour of crisis is some support from the Government,” he added.
