The sorry plight of cash crops.

Adivasi chief and artist Kandassanasan was among those who assembled to greet the Nava Kerala March at Cheruthoni in Idukki district. He is the descendent of Kolumban, the Adivasi guide for Idukki dam site. Kandassanasan brought a crown made of pepper and cardamom.
The first reception at Cheruthoni was with cardamom garland. Nava Kerala March was passing through an area where majority of the people depends on cardamom, pepper and rubber for their livelihood.
Plantations and cash crops are important components with which Kerala exists. Giving more importance for cash crops was a structural change that came during the 1970's. During the year 1960-61 plantations formed 33.34% of total area cultivated. It increased to 38.62% in 1970-71 and 52% in 1990-91. It is still on the increase. About 14 lakhs of people are depending on this sector. Bulk of them are either small and medium scale farmers or agricultural workers. Among the farmers 92% are earning their livelihood from small and medium farm holdings. 90% of rubber, 90% of pepper, 80% of cardamom and 25% of coffee produced in India is the contribution of Kerala. 28% of pepper, 21% of tea and 85% of coffee is exported. This sector is severely affected by the vagaries of foreign markets as their prices are dependent on international market. The new economic policy therefore shows its adverse impact in this area.
It was this area that was severely affected by the reduction of tariff and taxes as part of the liberalisation. Pepper priced Rs.205 per kg in internal market during 1999-2000. One kilo of coffee beans fetched Rs.80. Both these crashed drastically. Price of one kilo of vanila was around Rs.4000 when its farming started during 2003-04. Prices have come down for all these products. The severe crisis resulted from the globalisation policies caused the present pathetic situation prevailing in this area. It can be seen that it was in these areas that farmers committed suicide in Kerala.
As the global financial crisis has deepened the situation in the plantation sector depending on the export market has still worsened. The trade agreements with south Asian countries also creates much problems in this sector. The reason is that same products coming from countries with similiar climate creates crisis even in the internal market.
Specific assistance from the Central Government is required to address this crisis in plantation sector. Because, they are duty bound to protect this sector which contributed considerably to the foreign exchange earning of the national exchequer.
The continuance of adverse policies by the Central Govt without taking measures to protect the rubber farmers is to be condemned. The decision to redefine the nominal rubber farmers taken by the central cabinet on 5th February will have long lasting impact. It results in denial of even the available relief to hundreds of farmers. Central Cabinet has permitted to amend the rules made in 1977. The proposal to change the definition of nominal rubber farmers is part of this. This amendment is likely to be introduced in the coming session of parliament.
The decision of the Government is to redefine the small farmers as those having upto 10 hectares of rubber instead of the present 50 hectares. This “Rubber Amendment 2009” will deny relief available to hundreds of rubber farmers in Kerala. Central Home Minister Sri. P Chidambaram has justified the cabinet decision in his media meet.
The interim budget of UPA government does not have any suggestion to address the severe problems of rubber farmers. Indian agricultural and industrial sectors are severely affected by the global capitalist crisis. Price of rubber has crashed to around Rs.60 from Rs.142. One of the main reasons is the crisis in automobile industry. The reduction in price of crude oil which is a raw material used for the production of synthetic rubber also is a reason. The industrialist taking advantage of this phenomena also deepens the crisis. Central Government is not taking measures to help the rubber farmers taking into account these issues.
The state government is taking creative measures to address the problems of such sectors within its limitations. One of the important creative measure by the LDF government is the efforts to reopen the plantations those remained closed. The waiving of debts of the farmers committed suicide and the appointment of debt relief commission proves that the government will do what ever is possible. But the root cause of the problem lies with the wrong policies of the Central government. Farmers will be saved only if that government is defeated through massive struggles. The Nava Kerala March organised by us is receiving the good will of the people in the high ranges because of the struggles the party is leading over these issues.