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Horticulture and Allied Sectors: Plantation Crops:
Overview
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The total production of plantation crops during 2005-06 was around 10.39 million metric tonnes from an area of 3.11 million hectares. India is the largest producer and consumer of cashewnuts. During 2006-07, plantation crops contributed 6.5 per cent of total horticulture production. The performance of various plantation crops is as follows:-

1. Tea: The production of tea started recovering from stagnation from 2002-03 and since then a positive growth in production has been maintained. The Government has set up a Special Purpose Tea Fund for funding replantation and rejuvenation activities aimed at improving the age profile of tea plantations. The scheme has been approved for implementation till the end of the Eleventh Five Year Plan with an estimated outlay of Rs. 567.1 crore (subsidy of Rs. 476.1 crore and Rs. 91.0 crore towards capital contribution) to be provided by the Government. The estimated area to be taken up for replantation/rejuvenation during the period would be 85,044 ha, comprising replantation in 68,154 ha and rejuvenation in 16,890 ha. All these seeks to improve not only yield levels but also improve the quality to fetch better returns. Further, a rehabilitation package providing financial relief to the extent of Rs. 38.65 crore for 33 closed tea gardens was announced on June 29, 2007. 10 of these gardens have since opened.

Year Production Exports Imports Domestic Consumption (b)
Quantity Quantity Value Quantity Value Quantity
2002-03 845.97 184.4 1665.04 22.49 105.32 693
2003-04 878.65 183.07 1636.99 11.34 66.23 714
2004-05 906.84 205.81 1924.71 32.53 145.15 735
2005-06 948.94 196.67 1793.58 17.41 102.77 757
2006-07 947.12 218.15 2045.72 20.78 110.88 771
2007-08 (a) 805.18 100.87 998.68 11.80 76.16 N.A.
(Apr-Nov) (Apr-Nov) (Apr-Nov) (Apr-Nov) (Apr-Nov)  

Quantity: in million kg; Value: in Rs. crore

(a) - Estimated; (b) - Relates to calendar year; N.A. - Not Available

(Source: Ministry of Commerce and Industy)

2. Coffee: The production of coffee has not yet come out of the stagnation phase, notwithstanding a marginal increase from 2.7 lakh tonnes in 2005-06 to 2.9 lakh tonnes in 2006-07. Although India contributes only 4 per cent of total world production, Indian coffee has created a niche for itself in the international market, particularly Indian Robustas, which are highly preferred for their blending quality. Arabica coffee from India is also well received in the international market. To mitigate the problems of coffee growers arising from the low prices of coffee, a series of steps have been taken including restructuring of loans and interest relief to coffee growers (a subsidy of 5 per cent for small growers and 3 per cent for large growers is available on their working capital loans taken from the financial institutions). Import duty on specified machinery for coffee sector has been reduced to enable the industry to improve productivity and quality of coffee. Weather (rainfall) insurance as a risk management support for coffee growers in collaboration with Agriculture Insurance Company of India Limited is also implemented.

Year Production Exports Domestic Consumption
(lakh tonnes) (lakh tonnes) (Rs. crore) (US$ million) (lakh tonnes)
2000-01 3.01 2.47 1374 243 0.60
2001-02 3.01 2.14 1050 216 0.64
2002-03 2.75 2.07 1051 234 0.68
2003-04 2.71 2.33 1158 262 0.70
2004-05 2.76 2.12 1225 295 0.75
2005-06 2.74 2.02 1510 353 0.80
2006-07 2.88 2.49 1016 453 0.80
2007-08 (a) 2.62 1.2 1062 253 0.85

(a) - Estimated

(Source: Economic Survey 2007-08)

3. Natural Rubber: India is the fourth largest producer of natural rubber (NR) with a share of 8.8 per cent in world production in 2006. The area under NR plantation increased by about 8 per cent from 5.7 lakh ha from 2002-03 to 6.2 lakh ha in 2006-07. During this period, the production of NR increased by 31 per cent. Productivity reached the highest level of 1,879 kg/ ha which was also the highest among major NR producing countries in 2006. During 2006-07, the country exported 56,545 tonnes of NR against an import of 89,699 tonnes. Export of NR is perceived as a strategy to adjust domestic demand-supply balance and to educate the growers on the need to process the produce in conformity with the international standards.

Year Area Production Productivity Export Imports Consumption
(ha) (tonnes) (Kg/ha) (tonnes) (tonnes) (tonnes)
2002-03 569667 649435 1592 55,311 26,217 695425
2003-04 575980 711650 1663 75,905 44,199 719600
2004-05 584090 749665 1705 46,150 72,835 755405
2005-06 597610 802625 1796 73,830 45,285 801110
2006-07 (a) 615200 852895 1879 56,545 89,699 820305
2007-08 (b) 630000 819000 1784 - - 857000

(a) - Provisional; (b) - Estimated

(Source: Economic Survey 2007-08)

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