Planters’ body wants labour Plantations Labour Act scrapped

KOCHI: The United Planters’ Association of Southern India (Upasi), an apex body of planters in south India, has called for the scrapping of the Plantations Labour Act (PLA), 1951, asserting that such a step is imperative to save the Rs 43,000-crore industry, which is reeling under high taxes, unremunerative returns and commodity price fluctuations.

In its pre-budget memorandum to finance minister Arun Jaitley, Upasi has demanded that until changes are made to the PLA, all expenses under this category should be given weighted deduction to the extent of 200% of the expenditure.

The other demands are full expenditure allowance for replanting, temporary ban on rubber imports pending disposal of safeguard duty application, exclusion of tea exports from the ambit of cess and concessional import tariff for plantation machineries, said N Dharmaraj, president, Upasi. Plantation business in India is pegged at Rs 43,000 crore and south India contributes 60% to it.

It employs 24 lakh people (of which 60% are from south India), besides playing a significant role in supporting rural infrastructure. Dharmaraj said plantations are governed by the PLA, 1951, through which this industry provides housing, sanitation, water supply, crèches and medical care. Upasi drew the government’s attention to the commodity price fluctuations that impact the plantation business.