The plantation community is apprehensive over the reduced budgetary allocation to the Commodity Boards in the Budget, saying that this would detrimentally affect research and financial support to growers.

Growers told BusinessLine that the Budget, over the years, have given allocations that are not even adjusting to the inflationary trend with an exception to the Tea Board in the current Budget.

Tea Board dues

Prashant Bhansali, President-UPASI, said the planters’ body had sought Government’s help to ease the current difficult situation prevailing in the plantation industry. The main issue highlighted in the wishlist was to consider higher allocation of funds to the Commodity Boards to clear the amount due to the plantation sector.

“We note that there is an increase of ₹200 crore in the budgetary allocation for the Tea Board at ₹375 crore in the Budget Estimate 2021-22 as against ₹175 crore in the Revised Estimate 2020-21. This may help the Tea Board in clearing the pending dues on the various developmental schemes due to the growers,” he said.

However, there is a reduction in the Revised Estimate 2020-21 for all Commodity Boards and also in the Budget Estimate 2021-22 for Coffee, Rubber and Spices Boards which is a matter of concern and needs to be addressed.

BUDGET ALLOCATION

( in ₹ crore)

There is also an announcement of ₹1,000 crore for welfare of the tea workers, especially women in Assam and West Bengal. As the intent of the scheme is to provide welfare to women workers, the scheme should be extended to all the plantation-growing States across the country, including South India, he added.

Rubber Board

Highly placed sources in the rubber sector said that the reduced allocation is a move intended for the Rubber Board to work in convergence with the respective schemes of the State governments towards the cause and focus on the core areas like research and training. The 12th Finance Commission has increased the percentage of shareable revenue to the States and reduced the central allocation to commodity boards which has affected the support. This was the reason for the lower allocation of funds, the sources said.

RK Bhoodes, Chairman, Federation of Indian Cashew Industry, pointed out that the cashew sector comes under a council and not funded by the Government and this was the reason for lower allocation. However, the Cashew Export Promotion Council has requested the government for better payments in the wake of the current crisis due to pandemic. “We have submitted a revival package to the Commerce Ministry and expect a better package for revamping the cashew industry”, he said.