The Government is planning a series of initiatives to boost the plantation sector which has been in rough weather due to growing global competition. A special insurance scheme for plantations, restrictions on import of certain spices, new marketing initiatives for tea and coffee; and better compensation for plantations when prices crash are among the steps under consideration to boost this segment.
The commerce department and the agriculture ministry are also planning to work together to prop up this employment intensive industry.
The task of drafting a special insurance scheme for the plantation sector has been entrusted to former Finance Secretary Vijay Kelkar and the first
chief of the Insurance Regulatory & Development Authority (Irda) N. Rangachary. A report from the two finance sector veterans is expected in a couple of months.
In addition to the insurance plan, Prime Minister Manmohan Singh has set up a group of minister (GoM) headed by Agriculture Minister Sharad Pawar to work out a scheme which provides adequate compensation for small plantations during crisis periods.
Finance Minister P. Chidambaram, Commerce & Industry Minister Kamal Nath and overseas Indian Affairs Minister Vayalar Ravi form a part of the Panel which is expected to finalise its report in a couple of months.
The commerce department, which has been handling the plantations sector is also planning to work in close coordination with the agriculture ministry now. Mr. Pawar discussed the issue with Minister of State for Commerce Jairam Ramesh at a meeting in New Delhi. The discussions between Mr. Pawar and Mr. Ramesh are expected to cover import of pepper from Srilanka and import of cardamom from Guatemala through Nepal.
"The larger aim of the foucs on plantations is to generate incremental employment by boosting export India has been slipping on this front, losing market to various countries like Vietnam and Kenya. The coffee and tea industries are yet to fully recover from the import of the USSR disintegration," Mr. Ramesh said. .
To boost the coffee sector the Coffee Board is hiring Mr Carlos Brando, a Brazilian expert. The leading consultant is expected here in April and is likely to spend a week in India chalking out a plan to promote coffee.
