UPASI concerned over reduction of tea and coffee export

The United Planters’ Association of Southern India (UPASI), the apex body for growers of plantation crops has demanded the government to reconsider its decision to reduce the incentives on bulk exports of tea and coffee under the new foreign trade policy, reported PTI.

UPASI is an apex body of planters of tea, coffee, rubber, pepper and cardamom in south India.

The association expressed concern over reduction made to incentives for bulk exports of tea and coffee under the Merchandise Exports from India Scheme (MEIS).

The plantation industry, which is reeling under high cost of production and low prices, has been further affected due to reduction in the incentives for bulk exports of tea and coffee from 5 per cent provided under the Vishesh Krishi Gram Udyog Yojana to 3 per cent under the MEIS, UPASI said in a statement.

“While the new Foreign Trade Policy has attempted to simplify the procedures involved in exports, the coffee and tea plantations would be hit due to reduction in incentives for bulk exports by 2 per cent,” said, Vijayan Rajes, President, UPASI.

The body is also planning to approach the Commerce Ministry UPASI to rectify the ‘injustice’ done to the bulk coffee and tea exporters.

The association also expressed concern over low rubber prices on account of high imports.