Kerala planters request government to defer wage revision in plantations

Agri Business

Kerala planters request government to defer wage revision in plantations

V Sajeev Kumar Kochi | Updated on June 16, 2020 Published on June 16, 2020

Expressing inability to pay higher wages amid the Covid crisis, the plantation industry has approached the Kerala government with a request to postpone the proposed wage revision implemented in the sector.

The planters’ body has urged the government to initiate discussions on revising the wages as was done in the case of government employees. It was also requested to freeze the variable DA as on July 1 applicable to plantation workers.

Given the current price levels of tea, rubber, and coffee coupled with the high cost of production, the Association of Planters of Kerala (APK) has informed the government that estates cannot operate without adequate support from the Central and State governments. The Covid crisis has had a severe impact on the sector, which needs immediate and long-term support measures to sustain itself, it added.

The APK pointed out that key warehouses are filled with stocks of teas and are waiting for buyers due to the declining demand from domestic and international buyers. Tea prices have reached nearly ₹100 per kg, which is well below the prices received in 2018-19, while the production cost has risen by ₹10 to ₹151, it said.

For rubber, the APK said the farm gate price realised by growers is approximately ₹114 whereas the cost of production went above ₹174.

Highest wages in India

Kerala’s plantations pay the highest wages in India, nearly 15 per cent more than in neighbouring States. “Unless there is a timely intervention through financial and policy support, the crisis may lead to a total closure of plantations in Kerala,” a source in the APK said, adding that there is a need for rational decision-making to keep the industry afloat.

The Association also requested the government to provide necessary instructions to the Kerala State Civil Supplies Corporation to procure their requirement of tea from Kerala-origin estates.

The planters’ body emphasised the need for a long-term policy intervention from the government to increase revenue from the unit area by allowing growers to cultivate multiple crops on plantations.

The stringent financial viability parameters laid down by commercial banks has turned out to be an impediment in raising loans, APK said. It requested the sanction of long-term soft loans to plantations from the newly formed Kerala Bank for quality improvement, diversification, value addition, and marketing.

Published on June 16, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
Why farm subsidies in India are far lower than in rich countries