NPIP booster for plantation sector

by Deepal Warnakulasuriya

Plantation Industry especially tea was the leading foreign exchange earner till about the mid eighties. But, it still plays a significant role in the national economy, contributing 2.6 per cent to the GDP (2005). The total land area utilized is about 750,000 hectares while the sector provides over 1.5 million direct and indirect employment, according to statistics last year.

The plantation sector which was privately owned was nationalised in the mid 1970s, but being a failure it was privatised partially which has made a heading. The sector mainly comprises tea, rubber and coconut followed by sugarcane, cashew and palmyrah. Even after several researches and development strategies the sector was facing low productivity as well as high production costs.

After realising that structural changes were of little help to improve the viability of the large plantation sector, the Minister and relevant authorities decided applying some agricultural practices and factory modernisation to improve the quality and the quantity of products to reach expected targets.

The National Plantation Industry Policy (NPIP) introduced recently as NPIP Framework is comprised of eight specific strategic policy alternatives to "achieve national prosperity through development of the plantation industry" as planned in the plantation sector's vision. The policymakers expected to achieve long term sustainability of the sector by strengthening the state's role as a facilitator, regulator and moderator to enable the State sector to participate effectively with the private sector.

The specific policy alternatives are:

(a) Policy on Economic Governance in the plantation sector (Establishment of a policy analysis circle) within the Ministry of Plantation Industries

(b) Information and Communication Technology (ICT) policy

(c) Research and Development (R&D) policy

(d) Human Resource Development (HRD) policy

(e) Land-use policy

(f) Development-oriented plantation management policy

(g) Investment policy and

(h) Policy on targeted subsidies/incentives

Implementing this the government plans to contribute to GDP by 8.9 per cent of the GDP 2005 on the average from the plantation sector during the ten year period (2007-2016). It also expects to increase the growth rate of the plantation sector by two per cent per annum during the next five years and increase the level of productivity by five per cent per annum. Further the NPIP will also work to improve the livelihood and welfare of the plantation community by increasing investment in human, financial, physical, natural and social capital in the sector.

According to the policy framework the total estimated investment for the plantation sector would be Rs. 254,570 million for the proposed 10 year period. The estimate has been done for tea, rubber, sugar, cashew, palmyrah and coconut.

Speaking to the Sunday Observer Plantation Development Project Director Raja Premadasa said that each and every plantation had been separately discussed and planned. "If we take tea sub sector separately introduction of viable innovations in production, processing, value addition, marketing and integration to meet global needs are the major objective we considered. In addition effective transfer of the tested technology and facilitating the necessary requirements aimed at increasing the production level and profitability improvement", Premadasa said.

Very simply, the NPIP breaks the communication gap between the institutes or authorities in one sector. Secondly it links all the sectors making way for strengthening the country's economy. Tea sector has Tea Board, Tea Research Institute, Small Tea Estate Development Authority, Tea Shakthi Fund, Kalubovitiyana Tea Factory Co. and National Plantation Management Institute under its wings.

Plantations Industries Minister D. M. Jayaratne appreciating the documented national policy for the plantation industry identified it as an important milestone in the history of the plantation industry.

He also said that Cabinet approval has been obtained for the National Plantation Industry policy and now it is time to implement it. The Minister also stressed the necessity of increasing the production, meeting the global and domestic demands and at the same time improve the quality and the standards of processing in keeping with international trends.

According to the new plan, rubber saplings will be planted in non-traditional areas of over 34,500 hectares. Instead of exporting products, the policy emphasises on value added products.

New mills, production plans, research work and many more are there for each and every plantations.

Project Director Premadasa summarised the policy framework saying that the government's role for the plantation sector has been changed from a regulator to a facilitator making ways for all the relevant parties to participate in decision making.

For smooth implementation of policies, the time has come to appoint a steering committee to supervise the proceedings.