Pact with ASEAN will hurt farmers,fears Kerala

Political parties,including Congress allies,which is desperately trying to defend the deal,have lined up a slew of agitations to protest against the agreement and seek steps to revive the crisis-ridden farm sector.

Agricultural experts feel the coconut farmers of the state could be ruined as the FTA will allow the import of coconut oil from the Philippines a major producer which enjoys significantly lower costs of production. The farmers here have already had a bitter experience of past free trade agreements,like the 2006 South Asia Free Trade Agreement SAFTA,which saw the state flooded with cheap Sri Lankan coconuts. Besides,the free flow of palm oil from Malaysia,scarcity of labour and low prices of coconut and its products have already dampened the spirit of coconut farmers.

The lack of workers in the sector can be best understood when the government recently announced an award if a machine to pluck coconut without climbing the tree could be designed.

While coconut remains the most widely cultivated cash crop in Kerala,the state8217;s share in its production has come down to 45 per cent from 75 per cent in the eighties.

The state also accounts for nearly 90 per cent of countrys natural rubber production. As rubber commands a lucrative price now,lakhs of farmers have shifted to this plantation crop. In 2007-08 alone,an additional 9,805 hectares of land were brought under rubber cultivation. Though the natural rubber would not be hit by the ASEAN pact immediately,the commmodity would be stripped off its protective gear at a later stage,threatening to push a large segment of the farming community into crisis.

Keralas over-dependence on cash crops too makes it more vulnerable to the vagaries of the free trade market.

Of the gross cropped area of 27.67 lakh hectares in 2007-08,food crops comprising rice,pulses,minor millet and tapioca occupy only 11.57 per cent.

The remaining area is used for cash crops,whose market is determined by international factors. Kerala would be the worst affected state by the ASEAN pact. Import restrictions on port and quantity would little help to cushion the impact. We have already seen that the flow of palm oil could not be prevented by such restrictions, said P Nandakumar,a trade consultant in Kochi.

Looking from the consumer point of view,the trade pact should be welcomed. Everybody is looking at affordability, said Nandakumar. He said several north Indian states are already facing competition for their products such as pulses. Farmers in Kerala should see this as an opportunity to increase the farm output. The labour cost in the state is the highest in the country8221; said Nandakumar,who had worked as a consultant for the United Nations Conference on Trade and Development UNCTAD.

Another sector set to be badly hit is the fisheries. Kerala fishermens federation president T Peter said the Cabinet approval was against the spirit of the assurance given by the UPA to protect the livelihood of farmers and fishermen. The pact would see large-scale import of fish from countries like Thailand.

K N Harilal,member of the state planning board,said the pact would subject Kerala8217;s primary commodities to the vagaries of the market. Our farmers do not have the strength to face the already volatile market. The free trade would further expose them to a grave crisis, he said.