Govt mulls on insurance for plantation industry

Kochi, Aug 31: As part of its comprehensive programme to revive the plantation sector in the country, the Centre is planning to introduce an insurance package to bring about a price stabilisation and smoothening of the sector's products.

Addressing a workshop on 'Evolving an Export Strategy for Kerala-Role of Export Promotion Councils' here Union Minister of state for Commerce Jairam Ramesh today said, ''a four-member high level committee has been constituted to chalk out an insurance package for the plantation industry to stabilise and smoothen the price of the products.'' He said a report would be given by the committee to the ministry by October and hoped that after deliberations the package would be operational by next year.

The government is considering a new insurance package as the current Price Stabilization Trust Fund with the ministry was not sufficient providing only Rs 1000 to the farmers if there was any fluctuation in the price.

The minister said the governemnt has formulated a four-pronged programme through investment, research and technology, marketing and price stabilization to rejuvenate the plantation sector as it provides employment to six millin people in the country.

Mr Ramesh said the 4500-crore Special Purpose Tea Fund spread over 15 years would be operational by November and would be utilised for the rejuvenation and replantation of the country's tea indutry.

Around 25 per cent of the fund would be spent on Kerala, he added.

Regarding coffee, he said 90,000 hectares would be brought under new hybrid varieties and for pepper, 50,000 hectares would undergo replantation over the next seven years, he added.

He said the state can get financial assistance through National Horticulture for the replantation of pepper in the state.

The research and technology would also be given due importance with the upgradation of plantation laboratories to increase the productivity, he said.

UNI