Sir, the growing of coffee plantations requires a lot of input and a lot of labour. Due to the degradation in the environment, the growing of coffee plantations has become very expensive. So, for a small farmer, to sustain his coffee plantation and going to the Coffee Board to get his money back is a very long procedure. So, through this legislation at least the payments made to the coffee planter is simplified. Now, he can sell his produce in the open market and get the best price for it.
Sir, I am also happy to know that the Coffee Board would be entrusted with the responsibility of research and development. This research and development will go a long way in increasing and achieving the target of three lakh metric tonnes of coffee which they have decided to reach in the year 1999. So, I think, there is no question of opposing this Bill, because this Bill is meant for helping small growers and other labourers who are involved in the growing of coffee and who are completely dependent on it.
Sir, earlier, when the Coffee Act, 1942 was in existence, - which was an imperial Act and which is planned to be scrapped now - it guarded the interests of the coffee planters who were mainly Britishers, foreigners and who were the persons who introduced coffee plantations in these tribal areas of Karnataka, Kerala and other Southern States. Now, as you are Sir, aware, coffee can also be grown in places like Orissa and North-Eastern States of our country, which are termed as the non-traditional areas the districts of Kalahandi, Koraput, Phulbani are very favourable for coffee. Therefore, I would request the hon. Minister that the growth and promotion of coffee should be given to the non-traditional areas also, because in the activity of coffee growing, it has been assumed and seen that in one acre of coffee land one man day is utilised.
That means, if there is a coffee area of 500 hectare, nearly 500 mandays are created every day. `500x365 or 240' come to a thousand mandays in a tribal area. This emphasis should mainly be given in the tribal areas where there is degradation of environment because coffee plantations can stem such degradation. It is a plant which stops leaching of soil. These things should be planted compulsorily in the catchment areas of dams. With the right attitude.
It is a cash crop. It can save the environment. Besides, it gives us a lot of foreign exchange. So, you will see that today coffee export from the country has risen by 41 per cent. Where does this money go? This money goes to the poor people and to the downtrodden who are toiling in the coffee plantations. Therefore, this idea of making coffee plantation free from the pooling system will definitely go a long way in sustaining the rural economy of the tribal pockets and where the life-style is dependent upon the coffee plantations. With these words, I support the Bill.
I am not arguing for the pooling system. There were so many defects in the pooling system and the cultivators were put to too many difficulties. That should not be there. I agree with it. But when we go for 100 per cent free sale of coffee, I am afraid the small cultivators will be hit hard.
Mr. Chairman, it is a fact that in our country, the traders and the big plantation owners could manipulate the market and the prices. They have the resources to hold and manipulate in their interest, whereas the small cultivators are compelled for distress sale. Most of the small cultivators have to go to the market for the price, whichever they get. They cannot withhold their produce for better days. That is a case in every yield in this country. Can the hon. Minister deny that? Of all the cultivators, the small growers, the small peasantry have to sell their produce at the will and wish of these traders and the big people.
When coffee is for 100 per cent free sale, I have no doubt that the prices will be manipulated, the market will be manipulated and the small farmers will have to suffer. So, I would request the hon. Minister that there must be some mechanism to guarantee a remunerative price to the small cultivators. I am not bothered about the well to do people. They can manage somehow in this country, but the small farmers have to suffer.
Another point to which I would like to draw your attention and would ask the hon. Minister is, what is the difference between the consumer price of the coffee and the share the cultivators get. Has the hon. Minister ever calculated that? As we witnessed it in the morning, it is not only coffee but in every agricultural produce, they get less than 30 per cent of the market price. The middlemen and the traders are having the most of the chunk. It is a fact with regard to coffee also. So, it is the duty of the Government to guarantee a remunerative price for the lower level cultivators.
I am sorry to say that this obligation is not being discharged by the Government, nowadays. I have ample examples to give here. We, in Kerala, cultivate cash crops and our main agriculture depends upon cash crops. The Government of India promised in 1990 that we would be given a support price every year for coconut.
Whichever Government in power is not a question. The Government is continuing. In 1990, a written Order was issued; before harvesting the yield, a support price would be declared by the Government of India. That declaration has not been fulfilled regularly. We have been appealing to the Government. As the Government did not discharge their obligation, their commitment, three million cultivators of coconut in Kerala are in a very grim condition now.
Take for example, rubber. What is the plight of the rubber cultivators in Kerala? The rubber cultivators do not go to the extent of suicide because of their conscience. Otherwise, there would have been hundreds of suicide cases in rubber cultivation in Kerala. I wish to draw the attention of the hon. Minister that the price of industrial rubber products is skyrocketing. The consumers have to pay high price. The people who are having scooters and motor vehicles have to pay. What is the price of tyre? What is the price of the industrial rubber produce? What is the remunerative price that the rubber cultivators get? There is a vast difference. How can you keep quiet?
The Government of India have to intervene in order to do justice to the cultivators. There we have failed. That is the one season for sickness of our economy. Whatever you claim about the market economy and the growth rate, what is the plight of our Indian masses? Do you not see with your naked eyes the plight of the small cultivators of all produce in India? We must open our eyes and see around what happening to all the cultivators or the peasantry. They are in a very dangerous situation; going to the extent of committing suicide and they are living with only one meal a day. So, you have to think about them. You have to uplift them. With your restructuring, with your market economy, you are forgetting them.
Our planning, restructuring and the legislation must be adopted in the specific conditions of Indian population, particularly the Indian agricultural sector. So, in this context, the only thing I want is a guarantee of a remunerative price to the small cultivators from the Government. If you bring in such an amendment along with this Coffee (Amendment) Bill, that would be better. When you go for one hundred per cent free sale, there must be some provision to guarantee a minimum price to the Coffee cultivators with small holdings.
MR. CHAIRMAN: Now, the hon. Minister will reply.
THE MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI SOMPAL): Mr. Chairman, Sir, I thank all the hon. Members who have taken keen interest in raising certain valuable points in the context of the Coffee (Amendment) Bill, 1998. I would try to reply to all the points made by the hon. Members whichever is possible, in my limited capacity.
Shri Radhakrishnan has said that the interest of the growers has to be kept in mind. It is precisely with this objective that the amendment has been brought forward. There was a persistent demand by the growers because Shri Chacko and Shri Dhananjaya Kumar, who have been intimately connected with the business of coffee growing as well as functioning of the Coffee Board, have themselves said that the farmers, particularly small farmers, were being put to a lot of inconvenience because their payments were delayed and they had to face a lot of difficulties. Therefore, it is with this objective in view and after the persistent demand by the growers themselves that this pooling system has been abrogated. (Interruptions).
Regarding the interests of the workers, I may submit that the Minimum Wages Act and other things are quite adequate and these are being done by the respective States. I understand, particularly in the State of Kerala and Karnataka, the Minimum Wages Act and the laws are adequate protection for the workers and the Government there are fully aware and responsible to take care of the interests of the workers.
To the apprehension that large growers would corner all the produce and some monopolisation will take place, the recent movements in prices and the trends which we have observed during these two years bear it out that this is not being done though there was a dipping of price in the international market. But now they have come up. So, the apprehension that this trade will be cornered and monopolised by large growers and traders is also not rightly placed and now prices are good and the growers are also getting good prices.
Shri Dhananjya Kumar has given a very valuable suggestion regarding Coffee Board being asked to promote the sale of coffee, particularly certain brands of coffee and blended coffee in international market. I am pleased to inform, through you, Sir, the august House and the Members that Coffee Board is already doing this and Indian Coffee is being very well received in the international market and we are getting good price also. Now, the taste of Indian coffee is catching up in the Western countries particularly America and Indian coffee I repeat is being received very well by them.
So far as research, development and extension of good techniques for enhancing productivity and production is concerned, this is already there. An amount of Rs. 105 crore has been proposed to be spent during the Ninth Five Year Plan to upgrade the plantations, increase productivity per hectare and also production and also improve the blending quality and other aspects and also taking care of disease control and pest control. This is the mandate of the Coffee Board and the resources which it will mobilise through enhanced penalties rather than rationalised penalties for violation of certain provisions of the amended Act will be utilised for the purpose for carrying out research and development, providing adequate inputs, good seeds, good planting material and also loans. There are certain schemes for both traditional and non-traditional areas.
Shri B.K. Singh Deo has gone. He has asked about Orissa. Orissa is identified as one of the non-traditional areas for increasing the coffee production and bringing some land under plantation. The Coffee Board is taking up the increase of production and productivity and also promoting Indian coffee both in the national and international markets.
Shri Chacko having been the member of the Coffee Board and also being from the State which is an important State growing coffee has been intimately connected with this business and he has rightly recognised the need for depooling and freeing the growers of this compulsion. He has raised a very valuable point that in the case of glut, the prices dip below certain level and the growers may not be able to realise even the cost. I am pleased to inform you that Clause 26(1) of the Act empowers the Coffee Board to undertake market intervention operations in such a case and also that under Clause 16, the Coffee Board reserves the right to fix certain prices to take care of such a situation.
and the growers may not be able to realise even the cost. I am pleased to inform you that Clause 26(1) of the Act empowers the Coffee Board to undertake market intervention operations in such a case and also that under Clause 16, the Coffee Board reserves the right to fix certain prices to take care of such a situation.
So, that is already there. The Act is adequate in this respect too.
Regarding traditional and non-traditional areas, I may tell Shri Chacko that there is a scheme of the Government of India and certain areas have been identified as non-traditional areas for increased plantation and production of coffee and the scheme also has some element of subsidy which the Government of India is giving to various States.
One important activity which the Coffee Board is undertaking is replacement of the old plantation. As he has rightly said in the case of both tea and coffee -- that is the problem -- certain plantations are more than 50 years old and so their yield is very low. That is true of tea as well as coffee. An adequate plan to replace the plantation with new plantation which will surely enhance production and productivity and also give new and good quality to the produce so that they can realise a better price is also being undertaken.
The problem mentioned by him about the leased forest land which is inhibiting the rehabilitation or impairing the plantation, is a matter which comes under the domain of the States. But the Central Government can take it up with the respective States and those inhibitions can be removed and I assure him that we can take it up with the state Governments.
About the support to the Coffee Board, I have already said that Rs.l05 crore is proposed to be sent during the Ninth Plan and in the Eighth Plan a good amount of money has been spent on this programme.