I am extremely happy to be present here today on the occassion of the 112th UPASI Annual Conference. During the 11 I th Annual conference of UPASI last year, I had the privilege to interact with cross sections of the stakeholders' of several plantation industries including tea. I was also enlightened on several problems and issues confronting tea industry.

The plantation industry in the country is facing multifarious problems arising out of fall in prices, higher cost of production, fall in exports etc. This is particularly so in the case of tea, coffee, cardamom and pepper. While tea prices showed an improvement in 2004, unfortunately, the prices started declining from May this year, especially in South India. One major issue of concern in respect of tea, which is particularly relevant to South India, is the quality of tea produced. I understand that coarse plucking by some growers and poor manufacturing practices being followed in some of the tea factories have resulted in deterioration of the quality of teas, which has affected the prices. It is essential to address this issue of quality and I would call upon UPASI to take a leading role in this regard.

I was happy to be present on the occasion of the awards ceremony which was organized jointly by the Tea Board and UPASI yesterday for the winners of the Golden Leaf India Awards-Southern Tea Competition. I congratulate UPASI for organizing this competition, which will help in creating awareness for producing the best quality teas. I am sure that this step will help in promoting good quality South Indian teas in the international market. Ministry of Commerce & Industry, under the dynamic leadership of Shri Kamalnath Ji has taken several steps to help the plantation industry, in particular to help tea industry.

So far coffee is oconcerned, the prices have improved during the current year. However, the drop in production and productivity arising out of various factors such as hostile weather conditions, reduced farm inputs, pest and disease problems etc. have to some extent negated the advantage of improved prices. Coffee package announced by the Government of India in June 2005, is expected to provide much relief to the coffee growers.

I understand that the coffee prices at least in the medium term are going to remain at a certain range which can be profitable only if we become competitive in all our operations. The major coffee producing countries like Brazil, Vietnam etc. are increasingly becoming more cost competitive and efficient. In such a scenario, our growers cannot lag behind in their efforts to become cost competitive to meet the global challenges. I would like to appeal to the coffee growers to make all out efforts in tending to the farm operations in a scientific manner on a continued basis so as to make coffee farming a sustainable economic activity in the long run.

The prices of Natural Rubber have also shown improvement during the last few months. Government of India through the Rubber Board is implementing a number of schemes to help the rubber growers.

Indian rubber industry has undergone radical changes from the status of a highly insulated and internally regulated island to become an intrinsic part of the highly competitive world economy that is ruled by free market forces. The rubber production has, therefore. to be reoriented considering the global demand supply equation. It is also necessary to give thrust to cost effective measures so as to remain competitive.

The pepper and cardamom growers have been affected due to the continuous fall in prices. A number of schemes are being implemented by the Spices Board for planting material production, replanting etc. The Indian Cardamom Research Institute has released three high yielding selections of cardamom to the farmers so as to improve the productivity. Indian pepper is facing stiff competition from other producing countries. Government is taking all possible steps to help the pepper growers. So far as Vanilla is concerned, the prices have started firming up.

I congratulate UPASI on this occasion for their excellent contribution for the develpment of the plantation industry in Southern India.

Thank you.

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