Small and Micro Coffee Growers Association has opposed the proposed agreement of the Union government of importing the horticultural crops.
The dual standards of the Union government in connection with horticultural crops are dangerous. On the one side, the government is planning programmes of hundreds of crores of rupees for the revival of horticultural crops like coffee, tea, chilly and palm oil, and on the other side, it has decided to give tax concession by relaxing the regulations against imports. This has cropped the future of the growers, stated the Association President P V Lokesh.
New pact
India has come forward for trade agreements with the Association of South-East Asian Nations (ASEAN) comprising Malaysia, Vietnam, Cambodia, Indonesia and the like. If India signs the pact, it needs to relax the regulations on the import of coffee, tea, chilly and palm oil from these countries. In other words, India needs to cut down import tax on coffee from 100 per cent to 50 per cent; 40 per cent import tax on palm oil instead of 80 per cent; 35 per cent tax on chilly instead of the existing 70 per cent. If it happens in practical, the domestic market collapses and the growers will be under crisis, he apprehended.
Growers suffered enough due to the decline in the import tax on these crops a few years ago, but balanced themselves later because of increase in the import tax, waiver of loans, interest and tax.
Package
Now new package of Rs 750 crore is in the offing in order to fill up the loss incurred due to various diseases.
Another new scheme of concession for growing palm trees and special subsidy has also been formed in order to reduce insufficiency of food oil. But it takes 4-8 years to get the benefits of the new schemes, he analysed.
About $ 1,000 billion worth crops have been imported from ASEAN countries in the present year. The target to be achieved in 2010 will be $ 5,000 billion. Consequently, the time when the domestic crops facilitated by the new schemes enter the market, they will definitely suffer due to the existence of foreign goods, which might get an entry in advance. Hundreds of crores of financial assistance given to the new growers will be of no use, he said.
Mr Lokesh has urged all growers, labour organisations, political parties and MPs for united struggle against the proposed pact which might be fatal to the future of 20 lakh labourers and 5 lakh growers depended on the horticulture sector.