The Hindu Business Line : Social costs in plantations hurting exports, says Upasi

Coonoor, Sept. 15 While the market fundamentals suggest continuance of better prices for some more time, planters seem more concerned about the ever escalating production cost.

“The wages cost, particularly for the plantations in the South are the highest,” said Mr D.P. Maheshwari, President of the United Planters Association of Southern India.

Delivering the presidential address at the association’s 116th annual conference, he said the plantation sector was losing out on the export front because of the high social cost.

“We are nevertheless fortunate to have a huge domestic market, except for coffee. While this should offer solace, the recently inked Indo-ASEAN Free Trade Agreement could spell disaster for the sector as a whole. The sector is just recovering after prolonged recession and will definitely not be in a position to withstand another turmoil.”

“There could be compelling reasons for the Government to go for FTA with other nations, but it should not be at the cost of the domestic industry. The Government should lend a helping hand by sharing the social cost of plantations,” he said.

Wages Act

Expressing concern over the misuse of the Minimum Wages fixing machinery to lever up plantation wages, Mr Maheshwari said “it is necessary to have a re-look at some of the provisions of the Minimum Wages Act to protect the industry before it is too late.”

A strong labour union, collective bargaining supported and supplemented by the Industrial Disputes machinery represents a special and parallel stream for wage fixation. “And when this stream is established, there is no justification to invoke the Minimum Wages Act,” he said and urged the powers that be to convene a meeting of the governments of plantation States and plantation associations to discuss this issue and evolve a consensus.