The lockdown has impacted tapping operations and maintenance of rubber plantations in Kerala, the State that accounts for almost 80-85 per cent of the country's natural rubber output. Apart from causing a potential loss of about Rs 3,000 crore, the situation could also bring about a chronic shortage of rubber, which is used to make medical products such as gloves, catheters and sanitation masks in next couple of weeks, the industry says.
But that is not all. Most plantations crops like coffee, pea, black pepper farmers also staring at losses on un-harvested or standing crops due to acute labour shortage.
Ajith Balakrishnan, secretary, Association of Planters of Kerala (APK) said the lockdown that started on March 24 could hit the rubber sector with a loss of about Rs 3,000 crore. The industry is now seeking urgent approval from the government to start tapping and rain guarding. There have already been a few showers and if the rubber plantations are left unattended in the rain, next year's crop could get impacted.
"Kerala produces rubber for medical gloves, catheters, sanitation masks. We are going to face a shortage in the next two weeks and when the demand peaks, there may be a huge shortage of natural rubber in the market," Balakrishnan said.
"We are requesting government to allow three or four workers per hectare for rain guarding, and at least one hand per hectare for tapping. We can follow the guidelines on Covid-19 without any deviation. We have been given permission to deploy 50 per cent of workforce on tea plantation, for plucking, spraying and factory processing," he added. "In coffee and cardamom, the planters have been given permission only for spraying."
In tea plantations, the association is estimating a Rs 125-crore loss and if the management has to pay workers their wages, the loss would go up to more than Rs 200 crore.
The United Planters’ Association of Southern India (Upasi) has written to the Coffee Board, informing it that 21,000 tonnes of coffee worth Rs 400 crore are lying at curing centres and various ports. The harvest of Robusta and Pepper has been severely affected due to non-availability of workers. Picking in certain high elevation Arabica areas is still in progress, say planters.
Trade in coffee, however, has come to a complete standstill.
Planters say that no transport to take the coffee to the curing works or the curing works to port is available. This has brought exports to a grinding halt, and no payments have been received by exporters, who have been receiving no support from the banks, customs and other related offices.
As transport to and fro most ports isn't functioning, the supply chain has been completely disrupted. Domestic trade has totally collapsed and consumption has been severely affected due to lockdown.
Upasi has urged the Government to treat coffee plantations and allied activities as agricultural operations and allow them to continue, with adequate safeguards on social distancing and hygiene. Social distancing can be easily maintained in plantations due to the size of fields, Upasi says.
It also seeks interest subvention of three per cent on all loans to the coffee industry, and has requested the government to reschedule all crop loans, term loans and interest payments falling due between March 15 and June 30 by six months.
Upasi also urged the government to immediately settle all committed incentives under various developmental schemes of Commodity Boards. It pointed out that coffee replanting subsidy claimed by growers has not settled by the Coffee Board due to non-availability of funds.
Upasi also seeks capital subsidy for modernisation of pulping houses, installing irrigation facility, acquiring transport equipment and for value added activities.