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Policy consistency and fertiliser to enable plantations to grow

07 Nov 2022

  • Planters’ Association lays out its requirements to bring in more foreign exchange to Sri Lanka
By Sumudu Chamara Sri Lanka’s plantation sector, which faced unprecedented challenges due to the Covid-19 pandemic, economic downturn and certain policy decisions, remains hopeful that the sector is gradually returning to its previous state where it produced over 300 million kg of tea annually, earning around $ 1.4 billion per annum.  However, to achieve it, the sector needs an adequate supply of fertiliser and agrochemicals, and more importantly, it requires policy consistency on the part of the government. As part of the sector's revival, the existing wage system, which is based on a fixed daily payment, should also change, in order to ensure fair and competitive salaries for workers. These pressing concerns were highlighted by the Planters’ Association of Ceylon during a press briefing held in Colombo on Friday (4), where the association called for adequate support from the Government and other stakeholders to achieve its objectives. At a time of a national crisis triggered by a dearth of foreign reserves, paying urgent and serious attention to this US dollar-earning sector is of utmost importance, according to the association. Overcoming challenges, keeping hope  During the press briefing, the association explained that despite massive challenges faced by the plantation sector during the past two years, predominantly due to the pandemic, the sector has managed to maintain its stability.  “While the plantation sector faced challenges, it has begun to get back on its feet,” Association Chairman Senaka Alawattegama emphasised, adding that this is, in a context where the supply of fertiliser is gradually resuming, although at a higher price. He added that planters welcome the Government’s decision to reverse the ban on agrochemicals, which he said are expected to return to the market soon, and that they see these decisions as a strong encouragement for the tea sector, especially to pursue its target of producing 300 million kg of tea per year. He expressed confidence that while the sector has fallen short of what it achieved in previous years, in 2023, production can be normalised if agro policies are maintained in a stable manner.  “In the context of the unprecedented foreign exchange crisis, the success of our endeavours has urgent national significance. It is therefore critically important that all stakeholders rally together, set aside their differences, and work together to ensure maximum productivity at this crucial moment. Our industry is also calling for a reversal of the ban on oil palm cultivation in order to help conserve foreign exchange. If we are able to resume sustainable cultivation of oil palm, we can generate the level of income necessary to sustain additional investments across the entire plantation sector. We are hopeful of a positive response from the Government.” In addition, Alawattegama said that the Government has already taken progressive measures in controlling the import of latex, which he opined will help mitigate the sudden drop in rubber prices that has been observed in the recent months and will also help local producers get a fair price for their products.  “We are calling for the spirit of privatisation to be respected by providing regional plantation companies (RPCs) with the freedom to diversify crops where land has become unsuitable for existing primary plantation crops,” he said, adding that such measures could help generate additional revenue from less labour intensive crops.  Meanwhile, during the press briefing, the Association Media Spokesperson Dr. Roshan Rajadurai, pointed out the importance of supporting the plantation sector stressing that such support would be a national investment owing to the impact this sector has on the national economy. He said that what the association is seeking from the Government is policy consistency.  “Up until the ban on glyphosate was imposed, we produced about 330-340 million kg of tea a year. Hopefully, as the ban on fertiliser was lifted, the Government should take holistic, scientific, and evidence-based decisions when it comes to nationally important sectors such as this,” he added.  The association further said that if favourable market conditions continued, the sector would be able to achieve its target of producing 300 million kg of tea, and perhaps exceed the revenue that such excess production could earn for the sector. It was further stated that the Tea Board is currently promoting and is looking into new potential tea markets. Better wages, better living conditions According to the association, in a context where there is an ongoing discourse on the wages of plantation sector workers, it is high time to do away with the existing wage system, which is based almost entirely on a fixed daily wage, and instead, introduce a wage system that is based on productivity and revenue. The association explains that from 2000 to 2021, wages of estate sector workers have increased from Rs. 115 to Rs. 1,000, which is a 770% increase, and that currently, RPCs are following the Wages Board’s directive to provide a daily wage of Rs. 1,000 for workers. Adding that RPCs have been canvassing for wages to be linked to a productivity and revenue share model, the association explained that such a model would be extremely beneficial to workers. Among the benefits they pointed out are, workers being able to earn more than a fixed Rs. 1,000 a day, and workers having the benefit of flexi-hours. Another advantage of such a model is improved worker mobility, where family members of workers can also contribute towards the earning process. The association expressed confidence that in a context where a majority of the best harvesters are plucking between 30-40 kg of tea leaves on average, such a model could increase their earnings beyond Rs. 60,000 per month. The association emphasised that such a system will not only make it possible for workers to earn more, but will also improve the quality of their lives. Dr. Rajadurai added: “In the past, planters had monopolistic control over the terms of employment of workers, and workers had to depend on the plantations’ management as they had no recourse or access to any other work outside the plantation sector. But today, they have access to more services and opportunities. Plantation work is not signified enough. In light of these, we have been consistently promoting a model which is a productivity-based, or a flexible work model. We do not need to reinvent the wheel, because the tea stallholders sector of Sri Lanka (which has employed a wage model similar to the proposed model) today provides 74% of the national crop, and it is a classic example of how entrepreneurial work style can aid and expand the industry.”  Under the proposed system, according to Dr. Rajadurai, workers could go to the field at their convenience and work according to a self-supervised work style. He added that within such a system, workers would be able to earn more, given the manner in which the prices of tea have increased. He stressed that apart from the wage system, all other facilities, commitments, and obligations will remain the same.   Meanwhile, to discuss the proposed wage system, Alawattegama called for the immediate involvement of all relevant parties: “Our association calls for the commencement of immediate discussions in order to align all stakeholders on the importance of reforming the 150-year-old colonial-era daily wage model. To replace it, we are calling for a productivity-linked, revenue-share model, which has been practised with great success in the smallholder sector for decades. In such a system, we would be able to provide workers with truly sustainable livelihoods that go well beyond the Rs. 1,000 daily wage that is currently in place.  “Having carried out pilot projects in the entire RPC sector, we have proved that a revenue share model has the potential to increase workers’ earnings to as much as Rs. 50,000-80,000 per month. Workers will be empowered with flexible hours giving them control over how much they need to work.” Moreover, the association described that it has focused on improving the existing services while introducing new services and reliefs for plantation sector workers during the past two years. It said that workers are provided with a number of services and facilities including, maternity benefits which include three months of paid maternity leave, free maternal and child care on the estate itself and allowances of milk powder, flour, and rice, free issue of medicines and vaccinations, total custodial childcare for children up to five years, and elders homes for retirees. It also noted the establishment of hospitals, dispensaries, and child development centres. In addition, it added that cultivating various crops has also been promoted and supported in many plantation sector areas in response to the prevailing food insecurity.  


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