Given the crisis being faced by the plantation sector, the Association of Planters of Kerala has sought immediate ban on imports of tea, rubber and cardamom till the domestic prices reach the cost of production.

The planters body also urged the Centre to implement the recommendations of the inter-ministerial group on sharing of social cost without any further delay. The Plantation Labour Act should be amended in such a way that part of the expenditure on social cost be borne by the Centre, Gilbert D’Souza, Chairman, APK said.

He was speaking to BusinessLine on the sidelines of a press conference to announce APK’s Platinum jubilee celebrations to be held on December 4 in Kochi.

Severe crisis

According to D’Souza, the sector is heading for a serious financial crisis, which would be worse than the previous one that affected crops during 1999-2006.

He said the tea industry is today making a loss of above ₹25 per kg of made tea. The gross mismatch between the cost of production which is ₹110 and ₹120 and average price of teas is less than ₹85 has brought the industry in a severe cash crunch.

On rubber he said, the industry is incurring a loss of above ₹50 per kg of natural rubber produced. The average cost of production is above ₹150 per kg whereas the average price realised by the grower hovers around ₹103. The lower prices and oversupply in the international markets coupled with uncontrolled imports has brought this crisis situation, he said adding that cardamom growers are also suffering a loss of ₹200 per kg due to cheaper imports and inferior quality Guatemalan cardamom.

Related Topics