COONOOR, Sept 8: The plantation sector considers it as a retrograde step which would retard the future growth and the development of the industry. But the commerce ministry feels otherwise -- it would aid all developmental activities concerning commodities.The issue is the decision to free tea, coffee, natural rubber and cardamom imports from SAARC countries. "SAARC is a reality. There is no getting away from that," claimed union commerce secretary PP Prabhu.
Addressing the 105th annual conference of the United Planters' Association of Southern India (Upasi) here on Tuesday the commerce secretary told the planting community not to oppose the development since the Indian commodities cannot be dominated by imports from SAARC nations.
Dwelling at length on the appeal by the plantation industry to restore status ante and continue to retain the plantation commodities in the restricted list of imports, Prabhu said the globalisation concept should not be viewed as detrimental to the interests of the domesticplanters.
"We have to open up one day. You should consider this is a good beginning since it is a soft landing. We are not open to many countries," was Prabhu's advice to the members of Upasi. According to him, compared to any other industry, the plantation sector has a better exposure in the world market. Hence, it should not be worried about competition.
However, he agreed that the rubber planters may find the imports difficult to counter as they are yet to make a dent in markets abroad. "It was not a unilateral decision borne out of political compulsions, but based on economic rational. Our exports to Sri Lanka and Bangladesh is nearly 10 times that of our imports from these countries," he contended.
"Moreover, many of the tea estates in Sri Lanka are managed by Indian companies," he reminded the planters. According to him, opening up would also improve the quality standards of the Indian commodities. He urged the planting community to evolve a system for both quality check and one to check theextreme ups and downs in the trade.
"SAARC will be a free trade zone by 2001. The plantation commodities would be taken up for agreement in the next round of talks soon," he said and added, "slowly and steadily we have to get integrated into the world system. Globalisation is advantageous to the planting community in the country since it is dominated by knowledgeable and enlightened people compared to other countries."
Prabhu reminded that the inherent strengths of the plantations industry in the country, especially with the good support structures like research and development institutions, lending supports and auction systems, enable it to have an edge over other countries. "It should do well globally," he said.
The commerce secretary went a step further during his address urging the industry to stand on its own. "Associations like Upasi have to bring in a self-governing mode. The plantation industry should stop depending on government support and should learn to live by itself," he said.
Marketintervention, according to him, has its own connotation as interest of lobbies from the same segment vary from each other. On the status over the fall-out of the Russian rouble debacle, he agreed that the government is concerned, though majority of the tea is exported under the debt repayment route.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.