Coimbatore, Sep 15 The global drop in production of plantation commodities should benefit India. The Exim Bank Chairman and Managing Director, Mr T C Venkatsubramanian, expects a 15 per cent increase in exports during the current fiscal.
‘focus on niche’
Addressing a technical session at the United Planters’ Association of Southern India, Mr Venkatsubramanian said export of plantation commodities during 2008-09 was $1.9 billion. “It should increase by 15 per cent this year. However, a small drop in the price levels should see exports go up drastically. Planters should strive to increase productivity and be more cost-effective to improve the country’s stand on the export front. Small growers should focus on niche products to explore opportunities. The Exim Bank will extend support,” he said.
Out of the total production of 15.5 million tonnes in 2008-09, plantation commodities exports totaled 5.3 lakh tonnes, he said.
UPASI’s annual report has pegged the total value of plantation commodities in 2008-09 at Rs 22,725 crore, and export realisation at Rs 6,025 crore. South India’s share in the total value is estimated at 65.6 per cent and its share in export value at 72.2 per cent.
Of the 14.7 lakh growers and 22.8 lakh labourers involved in raising plantations in India, over 83 per cent of growers and 57 per cent of labourers are from South.
ASEAN trade pact
Asked about the impact of the Indo-ASEAN Free Trade Agreement, he said according to the agreement, the import tariff of tea and coffee would be brought down to 45 per cent from the existing level of 100 and for pepper from 70 per cent to 50 over a period of ten years. Natural rubber, cardamom and a few tariff lines in coffee are under exclusion list. “We still have a long time to gear up and be competitive,” he said.
Speaking on “Energy Conservation in Tea Manufacturing”, Mr R D Nazeem, Executive Director of the Tea Board. said the energy conservation project identified severe information gaps about energy efficiency and alternate energy solutions.
The preliminary energy audits in 256 tea factories in South India revealed that energy costs account for 35-42 per cent of processing cost of made tea.
“There is scope to reduce dependence on fire wood by 20 per cent, install energy efficient equipment, use briquette and install solar heating systems,” he said
Source : Business Line