Farmers in Kerala, Karnataka and Tamil Nadu, who account for 98 per cent of the country’s pepper production, recently managed to pull off something remarkable. In a rare show of unity, 12 pepper-growing associations from the three southern states formed a consortium. They then got a hearing from the Union Commerce Minister Suresh Prabhu and convinced him to act on their behalf. This is a much-needed intervention, after the price of ‘black gold’ came crashing down, from `650/kg to `350/kg, early this month on the back of unchecked import of low-quality pepper from Vietnam, deviously via Sri Lanka.
The import of pepper, in general, attracts 70 per cent duty in India and under an ASEAN agreement a duty of 54 per cent is levied on pepper imported from Vietnam. However, under SAFTA, pepper from Sri Lanka attracts a duty of just eight per cent. Result: several importers used the Colombo route to import Vietnam pepper into India. Similar scenarios are getting played out in natural rubber and cardamom these days, with Thailand and Guatemala playing the villain. In both instances, it is the Indian farmer who is the loser.
The Centre’s intervention in pepper shows what unity can achieve, even though temporary. For long-lasting answers, it is high time the Union government revisited some of the colonial rules which still govern the Indian plantation sector. It will be interesting to find out how many countries have rules that stipulate only rubber, tea, cardamom, cocoa, cinnamon, and cashew can be grown in more than 15-acre holdings. Not in too many corners of the world would you find a government which insists farming of high-value fruits and vegetables can only be done in small land holdings. Therefore, it is absolutely essential to revisit some of our land use regulations. For a start, and a big one at that, Indian farmers would breathe easier if it is the Union Agriculture and Farmers Welfare Minister Radha Mohan Singh who worked for their welfare. Surely, the plantation sector alone cannot remain an island.