COONOOR, Sept 8: The plantation sector on Tuesday called for measures to increase domestic consumption of commodities to improve the value realisations.In his address at the 105th annual conference, AD Chandarashekar, the outgoing president of the United Planters' Association of Tamil Nadu (Upasi), urged both the industry and the government to stress on domestic promotional campaigns to improve the per capita consumption of tea, coffee and rubber.
According to Chandarashekar, if the per capita consumption in the case of tea is increased by 100 gm (around 700 gm now) the result on the price front would be dramatic. The growth in the domestic tea market has been sluggish in recent years, he said.
The per capita consumption in Uttar Pradesh is as low as 275 gm, 190 gm in Bihar and 250 gm in Orissa. "We have to safeguard against the inroads being made in the beverages market by the soft drinks," he added.
In the case of coffee too, he said, there is an urgent need to increase the per capita consumptionfrom the present 60 gm. "The need for developing the domestic market for coffee to serve as a cushion can hardly be over-emphasised. I will be grateful if the action plan to increase the domestic consumption of coffee receives early attention of the commerce ministry," he added.
According to Chandarashekar, the need of the day to improve the prices of rubber is to chalk out ways and means of promotion of natural rubber consumption in the country. The per captia consumption in India at 700 gm is one of the lowest in the world, he claimed.
The only way to improve the domestic consumption of the commodity, he said is to diversify the usages of natural rubber. He urged the commerce secretary to take up with the surface transport ministry the issue of rubberisation of roads.
On the export front he assured the commerce secretary that the plantation sector would not be found wanting in augmenting the country's export earnings. "The Indian Tea Association and Upasi have jointly deliberated on delegations to betaken to other countries. The merchant exporter is also being consulted. Any assistance from the commerce ministry such as grant from market development assistance would be appreciated.
He aired the concern of the tea industry over the freeing of imports from SAARC countries. "I appeal to the government to restore status ante by continuing to retain plantation commodities in the restricted list of imports even in the case of SAARC countries".
Later, V K Goenka, chairman of the Consultative Committee of Plantation Associations urged the commerce secretary to spearhead a review of the plantation crops involving commerce ministry, concerned state governments, commodity boards and industry representatives. He welcomed the move to reactivate the central advisory council on tea.
Hitting out at unilateral and ad hoc decisions due to political compulsions, Goenka said that unchecked flow of various commodities from SAARC countries could seriously disrupt and affect domestic markets.
The common element whichbind the plantation sector as a whole, he said, are: Internal consumption, often cost-led, require the sector to augment production and area, strong export orientation holds the key to healthy domestic prices for the products, market volatilities and common refrain for generic promotion within the country as a hedge against market volatility.
He supported Chandrashekar in seeking the complete withdrawal of excise duty on packaged tea. He also criticised the move to raise the cess on rubber by 50 per cent from September 1.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.