Senile and less productive plantations of the nation are a drag on the economy and with new nations catching up in production, the threat is pervasive. Understanding the consequence of diminishing realisation for a sector that employs millions, with a majority of them being women, the union government has embarked on a massive re-plantation exercise to increase productivity. It is true that the plantation sector has contributed millions of rupees and valuable foreign exchange to the nation. However, presently most of the crops are facing competition from cheaper origins. The idea is to improve their productivity and make them competitive in the international market. Most of the plantations are 60 to 70 years old, while some of them have crossed 100 years.
Coconut has been the worst hit with less productive plantations. Coconuts are mainly grown by smallholders with 98% of the holdings of size less than 2 hectare. About 20% of the palms are both senile and unproductive, and therefore need replanting. The Union cabinet has given approval for a Rs 4,700-crore project to re-plant nearly 4 lakh hectare. Over 90% of the project area is in the state of Kerala, as the state has been the worst affected of the lot.
Another major sector that faces competition is tea. Change in lifestyles has seen consumption of tea decline in developed nations, while production in several nations like Kenya challenge Indian exports. The Tea Board has plans to replant 2 lakh hectare in 15 years, to increase the productivity of the industry. In the first year, the board managed to achieve 60% of the target (11,000 hectare).
India faces severe threat from Vietnam due to the poor productivity of its cashew plantations. Indian productivity is lower by 3-4 times the productivity achieved by Vietnam. The Government of India has a proposal to re-plant and rejuvenate cashew plantations to increase the productivity.
Under the scheme, 50,000 hectare from a total planted area of 8,37,000 would be re-planted at an estimated cost of Rs 60 crore. The rubber sector is also facing problems with growers not keen on replanting due to higher prices. Besides poor yield, the quality of latex also declines, as the tree gets old. Delay in re-planting could result in lesser supply and increased cost in the future.
Likewise, cardamom and coffee farmers? are also facing increasing pressure to re-plant and at the same time maintain returns from their plantations.