Plantation cos to get Rs 3.5k cr package

The government is readying a package of concessions worth around Rs 3,500 crore for the plantation sector as it looks to lift it out of a morass of rising input costs, a high debt burden and falling productivity levels.

The package, which will be announced independently of the upcoming Budget, comes at a time the sector has seen a drop in exports. Exports fell 7% year-on-year to Rs 3,347.97 crore during April-February 2007-08, data released by the ministry of commerce and industry shows. The package is likely to include a crop insurance component, which will have an outlay of Rs 729 crore and will benefit 12 lakh plantation labourers, according to senior officials in the commerce department.

Also likely to be included is a Rs 237-crore debt relief for coffee growers, not exceeding Rs 5 lakh per coffee grower. ���Coffee growers are facing a major problem of high debt due to a failure of crop, so rehabilitating them is extremely important. The debt waiver is likely to benefit around 17,000 coffee growers,��� said one official, who asked not to be named.

Another scheme expected to be a part of this package is a long-term programme for replantation and rejuvenation of the pepper crop with an outlay of Rs 1,067 crore. ���The main aim of the scheme is to retain the competitiveness of Indian pepper and improve its production and productivity,��� the official added.

The government is also planning a separate fiveyear beneficial package of Rs 1,400 crore for improving the living conditions of plantation labourers by providing them with improved amenities. Most plantation labour live within or around plantations.