Tamilnadu Economy Thread

[murlee]

The report PDF..

http://www.joneslanglasalle.co.in/Re...dex%202011.pdf

[murlee]

12th plan fixes growth target of 10 per cent

Precision farming, micro irrigation, horticulture, farm mechanisation, post harvest handling and agro processing industries would be among the areas that are to be accorded priority for spurring growth in the agriculture sector during the 12 Plan period in the state, said K.Dhanavel, Member-Secretary, State Planning Commission, here on Thursday.

The [COLOR="rgb(46, 139, 87)"]plan document would target a four per cent growth rate in agriculture sector and seek to double food production and enhance farmers' income by two to three times[/COLOR], Mr.Dhanavel told reporters on the sidelines of a regional level consultative meeting of the commission here.

A growth target of 10 per cent has been fixed for the 12 Plan Period with agriculture, power, industries including micro, small and medium enterprises, infrastructure, rural development, education, health, water supply, sanitation and environment being the focus areas.

The plan document would[COLOR="rgb(46, 139, 87)"] seek to safeguard the food security of the State and increase productivity through promotion of scientific cultivation techniques such as System of Rice Intensification, training through research institutions, and farm mechanisation, especially among small and marginal farmers.[/COLOR] Inland fisheries and other agriculture allied activities would also be accorded importance. Answering a query, Mr.Dhanavel said inter-district disparities would be addressed more effectively in the 12 Plan. Financial allocations would be made taking into account the ground situation in districts that were at the lower rung of the Human Development Index in the state. Infrastructure shortcomings in the newly created districts would also be addressed. Enhancing quality and employability through skill development would be the focus areas in the education sector.

Prominent among the suggestions aired at the consultative meet, were promotion of a special industrial corridor between Coimbatore and the central region, creation of a State level industrial facilitation centre, cold storages for agricultural produce and suspension of the Mahatma Gandhi National Rural Employment Guarantee Scheme during the agricultural season in view of the labour shortage.

Mr.Dhanavel, in a briefing at the meeting, said the State GDP has recorded 8.06 per cent growth during the first four years of the XI Plan period against the target of 9 per cent. The share of agriculture in State GDP has gone down to 8 per cent in 2010-11 from 11 per cent in 2005-06, though the sector still supported 40 per cent of the State population. Manufacturing sector remained stagnant with a share of 27 per cent in the State GDP. The services sector was emerging as the engine of growth with 65 per cent share in the State GDP and 40 per cent share in employment, he said.

The commission would finalise the plan document by the end of February and it would come into effect from April after approval by a meeting of the full commission chaired by Chief Minister.

Commission members Christopher Nelson, E.Balagurusamy, A.C.Muthusamy and K.Ramasamy; Collector Jayashree Muralidharan, and Mayor A.Jaya were among those who attended the meeting.

http://www.thehindu.com/news/cities/...cle2720184.ece

[saysenthil]

Tamil Nadu MSMEs have Rs 14,032-cr credit potential

The credit potential for Micro, Small and Medium Enterprise (MSMEs) sector in the state of Tamil Nadu is estimated at Rs 14,032.35 crore in 2012-13, according to the National Bank for Agriculture and Rural Development (Nabard).

The ground level credit (GLC) flow to this sector in the state has over the years shown steady growth, which is evident from the fact that the GLC was Rs 8,260.98 crore in 2008-09, increasing to Rs 9,437.08 crore in 2009-10 and further to Rs 10,421.84 crore in 2010-11. A target of Rs 12,582.48 crore has been set for 2011-12, according to Nabard.

Tamil Nadu houses more MSMEs than any other state in the country, accounting for 15.07 per cent of the national total. The sector has the potential to generate substantial employment opportunities.

The MSME sector in the state is dominated by a variety of industries — powerloom, handloom, agro-based industries, leather-based activities, general engineering, plastics, gem-cutting, electricals and electronics, chemicals industry, handicrafts, hotel and restaurants.

At the end of 2008-09, there were around 5.89 lakh MSMEs, generating employment for 42.40 lakh people in the state. The role of MSMEs in the state will continue to be high, as the capacity of the agricultural sector to absorb a growing population is shrinking in the wake of farm mechanisation and a change in the cropping pattern in favour of labour-saving crops.


http://www.business-standard.com/ind...ential/458993/

[saysenthil]

“Tamil Nadu has potential to become destination of choice”

Tamil Nadu has the potential to become an international destination of choice. With the combination of talent, technology and incentivised policy, the State has all the ingredients to become a global destination for products and services, S. Ramadorai, Advisor to Prime Minister on Skill Development, said on Wednesday.


Delivering the keynote address at ‘Connect 2011' meet organised by the Confederation of Indian Industry (CII) here, he said the economy of the State was dependable and consistent. Mr. Ramadorai said Tamil Nadu had the country's brightest minds, a vibrant entertainment industry, thriving art and culture and one of the largest entrepreneurial forces. “It must attract investment to drive growth and revenues multifold. In the line with world cities, Chennai needs investment to create world class infrastructure.”

He said challenges in health, education, water, agriculture, livelihood and energy should be addressed both in rural and urban areas. “Development is characterised by high influx of people into big towns and cities. This makes town planning critical not just for Chennai but other growing cities in the State. A holisitic approach to offer a comfortable urban lifestyle, create safe cities with affordable services, good education, reliable communication etc must be looked into as people evaluate their destination of choice based on these parameters.”

Mr. Ramadorai said the success of some recent Tamil movies reflected the customer taste ad appetite for science fiction and computer graphics. Combined with high quality technological talent available locally, the State could take leadership in becoming the preferred destination for film-related support services. Explaining his action plan for Tamil Nadu's sustainable growth, he said a centralised project monitoring system was required to track the progress of projects across the State.

Speaking on the occasion, S. Mahalingam, Chairman of ‘Connect 2011', said the global economic situation was worrying and hence the industry, which has a substantial export content, had to keep enhancing its value proposition for survival. Emphasising the need to attract research activities of global companies, he mooted for a separate department to support innovations.

T.T. Ashok, Chairman, CII (Southern Region) said the number of Indian and multinational organisations having presence in Tamil Nadu was testimony to the fact that Tamil Nadu had emerged as a hub for software, hardware and R&D.

Awards presented

Mr. Ramadorai received the Lifetime Achievement Award from Chief Minister Jayalalithaa. The other awardees were Ashok Bakthavathsalam, Managing Director, KG Information Systems Pvt. Ltd, Murugavel Janakiraman, Founder & CEO, Bharat Matrimony and Karumuttu T. Kannan, Chairman and Correspondent, Thiagarajar College of Engineering.

http://www.thehindu.com/news/cities/...cle2736022.ece

[saysenthil]

Koodankulam stir has not changed US firms'investment perception: Official

The continuing protests over the Koodankulam Nuclear Power project has not led to any "perceptible change in the perception" among American companies on investing in Tamil Nadu and they "are ready to participate" in business activities, a US official said today.

"There is no change. Once the framework is there, companies are ready to participate and the interest is as same as before," James Golsen, Principal Commercial Officer at the US Consulate General in Chennai, said.

Cont...

http://economictimes.indiatimes.com/...w/11195826.cms

[wlbkng]

Indirect ah arambichadhe avanga dhan. Then how would it change their perception..

[kongutamizhan]

X-posting.

Che gov evvalavu nallavanga parunga

Originally Posted by kongutamizhan

http://www.thehindubusinessline.com/...cle2738779.ece

Textile crisis waiting to happen

Things have never been as bad for the country's textile heartland.


The cotton textile industry of Tamil Nadu is unique for housing much of the country's spinning capacity and also a significant part of downstream knitwear, powerloom and handloom units that use the yarn from the mills. And all this is notwithstanding the State not being a major producer of the white fibre itself.

Consider the following. Tamil Nadu consumes 47 per cent of India's total cotton, with its mills accounting for 22.15 million out of the total spindleage of 47.89 million, and 2.87 lakh rotors of the total 7.6 lakh rotors in the country. The State also contributes 60 per cent of yarn exports from the country. Besides, it is home to Tirupur, India's cotton knitwear and hosiery capital, not to speak of major powerloom and handloom clusters such as Salem, Erode, Bhavani, Namakkal and Coimbatore or Karur for home textiles.

What is remarkable in all these is that Tamil Nadu produces not even five lakh bales out of the estimated 120-lakh bales annual cotton consumption requirement of its mills. So, it is largely a combination of native enterprise, unique skills sets and advantages of cluster development, built with time, that explains the State's predominance in India's cotton-based textile industry.

But all these are now threatening to come apart, courtesy a series of adverse developments that have converged into a deadly cocktail during the last decade or so. That the industry is today in a state of flux is an understatement at best.

FREIGHT COSTS
The first issue has to do with the raw material — cotton — itself. Some 60-70 per cent of the State's requirement is procured from Gujarat and Maharashtra, with Andhra Pradesh and Karnataka contributing smaller volumes. Till recently, sourcing cotton from outside or its pricing wasn't really an impediment.

However, consequent to the unusual increase in diesel prices in the last few years, the cost of transporting cotton from upcountry destinations has become unviable, especially for mills in the interior pockets of Tamil Nadu.

Today, mills in competing countries, such as China and Bangladesh, are able to haul Indian cotton in vessels through the sea route at less than a quarter of what it costs mills located in Tamil Nadu or even in other major spinning clusters in the country.

Detailed freight cost calculations for transporting cotton from Rajkot in Gujarat to a port in China via Mundra (inclusive of port handling charges) puts its at around Rs 1.34 a kg. This is as compared with Rs 4 for moving the fibre from Rajkot to Namakkal by road.

The freight advantage has enabled China and Bangladesh to derive a huge competitive edge compared to the industry in Tamil Nadu (and much of India) in sourcing the cotton that is grown in India itself! It has led to mills here impressing upon the Government the need to levy a freight equalisation tax of at least Rs 2,500 a tonne on cotton exports, to set off what it considers as an unfair freight advantage.

Tamil Nadu mills now incur Rs 4-5 a kg for bringing and unloading cotton from Gujarat and Maharashtra. Ironically, this cotton that is spun into yarn by the mills is then sent back as yarn for weaving into cloth by powerlooms in Bhiwandi or Ichalkaranji in Maharashtra. It means spending an equal amount again on transporting processed cotton back to the States from where the white fibre was originally produced. That raises the question: What stops Tamil Nadu from producing its own cotton, considering that the yarn from the huge spinning capacities of its mills cannot be entirely consumed within the State?

VALUE-ADDED TAX
Here, there is the anomaly from the value-added tax (VAT) imposed by the State Government, which has been raised from 4 to 5 per cent. It is a major impediment for cotton development, given that the corresponding central sales tax rate on cotton imported from other States is only 2 per cent.

That makes it cheaper for mills to source cotton from outside, rather than from within Tamil Nadu, which levies a 5 per cent VAT on raw cotton. On top of VAT, there is also a 1 per cent market committee fee on cotton and cotton waste, rendering sourcing of cotton from within the State all the more expensive.

But high cotton cost is not the only problem. There are also other chickens coming home to roost now. Mills in the State are losing their competitive advantage in recent times on account of the rising cost and shortages of power as well as skilled labour. Spinning mills in Tamil Nadu are currently facing up to 50 per cent power shortages , which rules out utilisation of capital at the ideal 90 per cent levels.

As regards labour, the first aspect concerns wage costs. These have gone up because of general growth in labour demand from other industries as well, plus state welfare schemes from the Mahatma Gandhi National Rural Employment Guarantee Act, besides the provision of super-subsidised grains and other items through fair price shops. The industry, right or wrong, views these as having impacted work culture.

RISING WAGES
The rural poor are no longer inclined to work just to eke out a bare living, thereby automatically putting upward pressure on the wages required to draw them to the mills. The second aspect relates to skills. Mills today are unable to get skilled workforce, with the skill gap widening at 50-60 per cent. Attrition rates have also increased, and even those with minimal skills are up for grabs.

The industry, while contending that it would be meaningless to invest huge sums on training, feels the need, though, to evolve a system for retention of their workforce. Here, there has been a combination of circumstances that have gone against the industry. Some three years ago, the Madras High Court ruled that the State Government has powers to fix minimum wages for apprentices in the textile industry, which, mills say, is peculiar to only Tamil Nadu. These, in turn, come to no less than Rs 250 a day for raw hands, and even at this rate, it isn't easy to get people.

Looking back, it is said that till the early 1990s, the mill worker was a much sought-after groom. Today, though, they are a condemned lot, which people attribute to the policy of de-licensing that led to newer mills springing up in rural areas. The wage bill in these units, mostly around Dindigul, was only 3-5 per cent of their turnover, as opposed to the 12-18 per cent for the established mills in Coimbatore.

With time, the latter started to bleed, with manpower costs eating into their profits and forcing a churn. The mills that offered voluntary retirement packages to workers managed to somehow survive, while others had to simply shut down. In the process, the mill worker suffered erosion in both economic and social status.

Today, the entire industry is in crisis, with high volatility in cotton and yarn prices; sudden glut in domestic as well as global markets, resulting in huge accumulation of yarn stocks, closure of dyeing units in Tirupur and Karur due to environmental reasons, and acute shortages of power and skilled labour.

The spinning sector in Tamil Nadu, which alone employs six lakh workers, has incurred cash losses of more than Rs 7,500 crore in January-September. Since the end of May, for the first time in history, it has gone for a 35 per cent production reduction.

One hopes there is some light at the end of the tunnel. Currently, the scenario out there is pretty bleak.

[satishanu]

all bcos of velinattu sathi as well ulnattu sathi

[kongutamizhan]

News related to consumer / FDI. So posting in this thread

http://tamil.oneindia.in/news/2011/1...s-aid0136.html

சென்னை: இந்தியா முழுவதும் விளைச்சல் அதிகரிப்பால், அனைத்து வகை மளிகைப் பொருள்களின் கொள்முதல் விலையும் குறைந்துள்ளது. ஆனால் உள்ளூரில் சில்லறை வியாபாரிகள் கொஞ்சம் கூட விலையைக் குறைக்காமல் மக்களை ஏமாற்றி வருகின்றனர்.

அனைத்து மளிகை பொருட்களின் கொள்முதல் விலையும் 30 சதவீதம் முதல் 40 சதவீதம் வரை குறைந்திருப்பது குறிப்பிடத்தக்கது. ஆனால் சில்லறை வர்த்தகர்கள் ஒரு சதவீதம் கூட விலையைக் குறைக்காமல் விற்பனை செய்து வருகின்றனர்.

இந்த ஆண்டு இந்தியா முழுவதும் பருவமழை விவசாயத்திற்கு ஏற்றப்படி நன்றாக பெய்துள்ளது. இதனால் துவரம்பருப்பு, கரும்பு, மல்லி, உளுந்து, மஞ்சள், பூண்டு உள்பட அனைத்து பொருட்களின் விளைச்சலும் அதிகரித்து உள்ளது. கடந்த மாதம் ஒரு கிலோ குண்டு மிளகாய்வத்தல் ரூ.220-க்கு விற்பனையானது. நீள மிளகாய் கிலோ ரூ 130 வரை விற்பனையானது.

பூண்டு ரூ 140 வரை விற்பனையானது.

இப்போது எக்கச்சக்க விளைச்சல் இருந்த போதும், எந்தப் பொருளின் விலையும் குறையவில்லை. மிளகாய், பூண்டு போன்றவை இப்போதும் கிட்டத்தட்ட இதே விலைக்கு விற்பனை செய்யப்படுகின்றன.

கரும்பு விளைச்சல் பெருகி, சர்க்கரை உற்பத்தி அதிகரித்துள்ளதால், விலை கணிசமாக குறைந்துள்ளது. ஆனால் இன்னமும் சில்லறை விற்பனை கடைகளில் கிலோ ரூ 35 முதல் 40 வரை விற்கப்படுகிறது.

பருப்பு, புளி, தனியா என அனைத்து மளிகைப் பொருள் வரத்தும் அதிகரித்து, கொள்முதல் விலை குறைந்தாலும் சில்லறை மார்க்கெட்டில் விலை உச்சாணிக் கொம்பிலேயே உள்ளது.

சமையல் எண்ணெய் வகைகளின் விலை இன்னும் மோசம். விளைச்சல் அதிகரித்தால் விலை குறைவதுதான் நியதி. ஆனால் வியாபாரிகளின் பேராசை காரணமாக, அனைத்து வகை சமையல் எண்ணெயும் மேலும் விலை உயர்த்தப்பட்டுள்ளது. ஒரு முறை ஏற்றப்பட்ட விலையை எக்காரணம் கொண்டும் குறைக்க விரும்புவதில்லை சில்லரை வர்த்தகர்கள்.


English Summary: Though the production of all food grains and groceries increased nationwide, the retail sellers adamantly keeping the high price for all the items.

[saysenthil]

Indian industry's investment growth high in 2009-10

Recovering from the impact of global financial crisis in the second half of 2009-10, Indian industry unleashed pent-up investments in the economy.

Investments grew by 25.86 per cent in 2009-10 against just 19.92 per cent and 19.47 in 2008-09 and 2007-08, respectively.

Also, fixed capital growth was up at 27.97 per cent from 24.95 per cent and 18.18 per cent over the period.

"In the second half of 2009-10, there was a huge increase in capital goods production due to companies' long-term investment, which was frozen. Increase in fixed capital is reflected in the growth in investment, and 28 per cent is highly remarkable," chief statistician T C A Anant told reporters while releasing the Annual Survey of Industries (ASI) for 2009-10.

However, the growth in value of output was down to 13.75 per cent in 2009-10 compared to 17.9 per cent in 2008-09 and 15 per cent in 2007-08 since investment and fixed capital has a lag effect. Similarly, growth in the number of factories was up by 2.29 per cent from 6.10 per cent and 1.2 per cent over the periods.

The survey provides information on factories registered under the Factories Act, 1948, and Bidi and Cigar establishments registered under Bidi and Cigar Workers Act, 1966.

ASI provides a more reliable data compared to Index of Industrial Production (IIP), as it is based on the companies' audited data.

"ASI data growth is always higher than IIP, as in IIP you have a fixed set of of entities which can report on monthly basis. These are big companies, while it is the smaller companies which report higher growth," said Anant.

On volatility of IIP data, he said, it is impacted by production volume volatility, unlike the prices. For example, he said, strike by workers in Maruti [ Get Quote ] had cut its production of cars dramatically.

IIP grew by 5.3 per cent in 2009-10, compared to just 2.5 per cent in 2008-09 and 15.5 per cent in 2007-08.

According to the ASI data, growth in workers, signifying employment at lower level, also declined to 4.35 per cent from 7.06 per cent and 4.03 per cent over the periods.

As a consequence, growth in wages to workers declined to 15.34 per cent from 17 per cent and 15 per cent over the respective periods.

It means, the impact of global financial crisis in terms of workers employed and wages was felt in 2009-10, while companies switched over to capital more vigorously.

The data also showed that net value added by Indian companies rose to 10.28 per cent from 9.59 per cent growth and 21.70 per cent over these periods.

The fuel consumed to output ratio declined to 0.04 in 2009-10 from flat 0.05 during the past five years indicating better fuel efficiency.

Tamil Nadu topped the pack on various fronts. It had the highest number of factories at 16.9 per cent of total such units in India in 2009-10, followed by Maharashtra [ Images ] at 12.2 per cent and Andhra Pradesh at 10.8 per cent.

In terms of employment, Tamil Nadu also had the highest percentage share in all-India employment figure at 16 per cent, followed by Maharashtra at 12.8 per cent and Gujarat at 9.6 per cent.

http://www.rediff.com/business/repor...h/20120102.htm

[saysenthil]

Number of industrial units in India grew 2.3 per cent in 2009-10

The total number of industrial units in the country grew 2.3 per cent year-on-year to an estimated 1,58,877 during the financial year April 2009-March 2010, provisional figures of the Annual Survey of Industries 2009-2010 released by the National Sample Survey Organisation (NSSO) showed.

Among industries, factories under the `food products' group accounted for 16.5 pet cent of all factories across all industries, while 'other non-metallic mineral products' accounted for 11 per cent and 'textiles' 8.4 per cent of the total number of factories in the country.

Among the states, Tamil Nadu reported the highest share (16.9 per cent) in the number of factories while Maharashtra had 12.2 per cent, Andhra Pradesh 10.8 per cent, Gujarat 9.8 per cent and Uttar Pradesh 6.9 per cent of the total number of factories in the country.

Investments in fixed capital at current prices grew 28 per cent against 25 per cent the previous year. At constant prices (2004-05), however, the growth was lower at 18 per cent, against 25 per cent in 2009-2010.

Basic metal industries recorded the highest investment in fixed capital, at 21 per cent, followed by coke and refined petroleum products, at 10.7 per cent.

Among states, Gujarat had the highest share in fixed capital formation, at 17.7 per cent, followed by Maharashtra (14.6 per cent), Tamil Nadu (9.8 per cent), Andhra Pradesh (9.6 per cent) and Karnataka (7.1 per cent).

Employee compensation

Employment in terms of total number of people engaged has increased 4.1 per cent year-on-year, whereas the emolument (compensation) to employees increased by 13.6 per cent at current prices and by 11.1 per cent in real terms.

Among all industries, food products generated the highest employment, at 12.5 per cent, followed by textiles (11.7 per cent), basic metals (7.6 per cent), wearing apparel (7.3 per cent) and other non-metallic mineral products (6.8 per cent).

Value addition

The gross value added by industrial units in the country has grown 12.4 per cent at current prices and 10 per cent in constant (2004-05) prices, year-on-year, against 10.6 per cent and 4 per cent, respectively, in 2008-09.

Industrywise, basic metals, chemicals and chemical products and coke and refined petroleum products occupied the first three positions with GVA shares of 13 per cent, 10 per cent and 8 per cent, respectively.

Cont....

(I was not able to copy the table put up in the website. Do have a look!)

http://www.domain-b.com/industry/gen..._textiles.html

[satishanu]

[saysenthil]

Tamil Nadu tops manpower outsourcing in South

Tamil Nadu tops southern states in its dependence on outsourced workforce. According to a report on manpower outsourcing in southern states, released by Confederation of Indian Industry, TN engages 33 per cent of the estimated 10 million outsourced employees working in various sectors, excluding the construction sector. According to the report the manufacturing, retail and government sectors emerge as the largest users of outsourced employment.

Among those sectors thriving on outsourced employees, manufacturing sector is the largest revenue contributor having a share of 41 per cent, the study said.

It was also revealed that while blue-collar employees accounted for 58 of the total number of outsourced employees, grey and white-collars stood at 31 and 11 per cent respectively.

While large service providers provide higher order services, smaller firms mainly focus on soft services.

The proliferation of players in the soft services business is primarily due to low entry barriers, ease in recruiting and training people, lack of requirement of specific skill sets and higher demand. The study also found out that there has been a 30 per cent increase in the number of contract employees over the last three years and the organisations expect outsourcing to grow in future too.According to the 132 service providers who were surveyed, the addition to employees that has been growing at nearly 40 per cent in the last three years, is expected to grow at 15 per cent in future. The organisations expect a shift from a focus on quantity to quality, which will yield a more productive and flexible workforce. The industry will continue to be characterised by large and smaller service providers, the report added. Interestingly, the requirement for outsourced employees is met by over 30,000 staffing providers and contractors in the south. These contractors supply manpower, both daily and weekly wage labourers, and are active mainly in the construction and manufacturing sectors. Additionally, in each state, there are several unregistered contractors who operate with less than 15 personnel. Tirupur, for example, has nearly 1,000 contractors, it said.

The organised staffing service is a relatively large industry with billing of over `120 billion, and the south has abut 8,500 service providers. While the small and very small players account for over 95 per cent in terms of the number of players, the large and medium players generate over 75 per cent of the revenue. Large firms such as Teamlease, work with over 15,000 candidate profiles, and service three sectors, 67 industries and 474 functions.

http://ibnlive.in.com/news/tamil-nad...14-60-120.html

[kongutamizhan]

http://www.thehindubusinessline.com/...cle2777994.ece

Indian tea, a bitter brew for some

A buyers' cartel keeps tea prices down, rendering plantations unviable.


Munnar hills are home to many large and small tea plantations, the best-known among them being the Kannan Devan Hill Plantations Pvt Ltd., the erstwhile jewel in the crown of Tata Tea Limited, and now an important outpost of Tata Global Beverages Limited.

In 2005, Tata Tea hived off the Kannan Devan plantations as a worker-owned company, retaining just around 18 per cent of the shares. This action was symptomatic of the declining profits of the plantation sector in the country. The sector, spread out across the states of Kerala and Tamil Nadu in the south, and West Bengal and Assam in the east, employs an estimated 12.6 lakh workers.

FALLING TEA PRICES
Since the turn of the century, the sector has been faced with a crisis of falling prices for the tea leaf. The crisis had its biggest impact on tea plantation workers. As per the Central Government Ministry of Labour estimates, by 2003, out of a total of 4819 registered plantations, 1367 (or nearly 30 per cent) were defaulters in payment of workers' dues. In addition, during the past twelve years, 36 companies illegally closed or abandoned tea plantations, spread across 1,28,000 acres.

The Kannan Devan tea plantations are today among the best-managed plantations in all of Kerala, with workers paid the legal wage, and getting their statutory benefits. However, conversations in the plantation starkly brought out issues plaguing the sector. The legal minimum wage paid to workers today is Rs 145 per day. This is less than the prevailing wage under the NREGA in Kerala of Rs 150 per day. This is significantly lower than wages paid in construction and tourism in Munnar, of between Rs 250-300 for unskilled work. Why do workers then continue to work in the plantations?

Most workers are Tamil-speaking dalit migrants. In fact, migrant workers form the backbone of the tea plantation sector in the country. In Kannan Devan, these workers are second- and third-generation plantation workers, and see their futures linked with the plantations. They have their homes in the plantation housing colonies, and have benefitted from free medical care and primary education. However the situation is changing.

With tourism in the region came both opportunity of better wages and the necessity to earn more in the face of high inflation. Faced with financial crisis, many plantations cannot afford to provide adequate housing and healthcare benefits, and find it difficult to attract workforce.

In a major estate near Trivandrum, which has been leased out by the management to a middleman, workers are merely paid the statutory minimum wage of Rs 145, and get no other benefits. Their Provident Fund (PF) dues haven't been remitted by the company since 1997. Workers who continue to work here are old, and don't see the possibility of alternative employment. They are also unable to leave, given that they are owed large sums of money as statutory dues by the company.

The main reason for the crisis in tea plantations is falling real prices for tea. The price is governed by six tea auction centres in Kolkata , Guwahati, Siliguri, Kochi, Coonoor and Coimbatore. These auctions are tightly controlled by a cartel of traders.

As a result, average auction prices in south India declined from Rs 69 per kg in 1998 to Rs 44 per kg in the year 2000. From 2000-07, the auction price varied between Rs 45 to Rs 50 per kg. It increased to Rs 66 in 2008 and to Rs 81 in 2009, but fell to Rs 69 by 2011 — the tea price prevailing in 1998. Though inflation had more than doubled the cost of living, the plantation tea price for 2011 had returned to the prevailing value of 12 years ago.

RETAIL SECTOR UNAFFECTED [This is where FDI would have been benefitial]
The same crisis has, however, not visited the retail sector in tea. The Annual Report of Tata Tea tells us that the company had an average price realisation of Rs 119 per kg for tea in the year 2005-06, which increased to Rs 207 per kg in 2010-11 — a 72 per cent price increase for a five-year period. During the same period, the consumer price index increased by 57 per cent. The company, therefore, enjoyed increasing realisation for tea sold at a higher-than-inflation rate in the last five years.

For the year 2010-11, the company made an operating profit of Rs 207 crore, with a healthy operating margin of 11.6 per cent. Thus, the consumer market for tea did well during the period when tea plantations faced a downturn. It isn't surprising that Tata Tea, in 2005, saw good business sense in passing on the burden of running the Kannan Devan estates to the plantation workers.

The crisis in the plantation sector is endemic across the country. The minimum tea garden wages, at Rs 85 per day in West Bengal and Rs 71 per day in Assam, are significantly lower than those in Kerala.

Labour costs alone contribute to around 50 per cent of price realisation at the plantation. The owners claim that they cannot afford to increase wages and also pay the benefits due to workers under the Tea Act. The competitive pressures of tourism and urbanisation are an incentive to many owners to exit the business of growing tea.

Is there a way out of the crisis?

Yes, if the tea sector is taken as a whole to work out its economics. While wages at the plantation level are 50 per cent of the realisation, they constitute only 10-12 per cent of the retail tea price. The sector can afford to pay better wages by redistributing profit margins. The main hindrance to this is the stranglehold over tea prices at the auctions.

The Tea Board is aware of the oligopsony (market controlled by few buyers). But without basic changes in the market structure to make plantations more profitable, attempts by the Board will only yield limited results.

(The author is an independent labour and industry researcher.)

(This article was published on January 5, 2012)

---------------------------------------------------------------

Though the wages and benefits marked in red are for Kannan Devan, situation in TN was not much different during late 90s and early 2000s. Like I used to mention several times, Tea industry used to be the best industry to work on for un-skilled workers. No other sector can match the benefits and income for an unskilled labor.

[kongutamizhan]

http://www.thehindubusinessline.com/...cle2783695.ece

Retail FDI debate should focus on benefits to farmers: Vittal

Discussions on foreign investment in retail should focus on the agriculturists who will benefit from opening up the market, said Mr N. Vittal, Former Central Vigilance Commissioner.

At a seminar on ‘Twenty Years of India's Liberalisation', Mr Vittal said: “The focus should be on the benefits that 60 crore agriculturists would derive from retail FDI. Instead, 5 crore trade-wallahs got all the attention and the whole issue was sabotaged. Public opinion should have been generated while discussing the issue.”

The Centre has put on hold its decision on allowing 51 per cent FDI in multi-brand retail following pressure from various quarters.

Gains from liberalisation

Commenting on the benefits of liberalising the economy in 1991, Mr Vittal said this rescued the country from the licence raj and helped India achieve success in the IT, automobiles and telecom sectors. “Today, we have leading global car brands in the country. India's call rates are the cheapest in the world.”

Liberalisation has also helped the country improve its forex reserves, from around $2 billion in 1991 to $300 billion today. However, income-tax and Customs laws stand in the way.

The retired IAS officer took a dig at the freebie culture in Tamil Nadu. “If economy has to progress, wealth has to be created. Not distributed.”

Dr N. Ravichandran, CEO, Lucas-TVS, said, before liberalisation, India was not considered a nation connected with trade. Liberalisation and rapid advances in technology have brought about a turnaround in the way the country is viewed.

Asymmetric growth

In his keynote address, Mr C. Ramachandran, Former Secretary, Ministry of Finance, Government of India, said that although there has been wealth creation in the last 20 years, poverty has not been eliminated.

“Economic growth does not in itself lead to the country's development,” he said, referring to the “asymmetric growth” across different sections of society.

According to Mr Manickam Ramaswami, Chairman and Managing Director, Loyal Textiles, the proposed manufacturing policy must address issues of power shortage, cost of logistics and prices of raw materials.

The seminar was jointly organised by the Institute of Financial Management and Research (Chennai), PSG Institute of Management (Coimbatore) and Xavier Institute of Management and Entrepreneurship (Bangalore).

[geico2000]

Originally Posted by kongutamizhan

News related to consumer / FDI. So posting in this thread

http://tamil.oneindia.in/news/2011/1...s-aid0136.html

சென்னை: இந்தியா முழுவதும் விளைச்சல் அதிகரிப்பால், அனைத்து வகை மளிகைப் பொருள்களின் கொள்முதல் விலையும் குறைந்துள்ளது. ஆனால் உள்ளூரில் சில்லறை வியாபாரிகள் கொஞ்சம் கூட விலையைக் குறைக்காமல் மக்களை ஏமாற்றி வருகின்றனர்.

அனைத்து மளிகை பொருட்களின் கொள்முதல் விலையும் 30 சதவீதம் முதல் 40 சதவீதம் வரை குறைந்திருப்பது குறிப்பிடத்தக்கது. ஆனால் சில்லறை வர்த்தகர்கள் ஒரு சதவீதம் கூட விலையைக் குறைக்காமல் விற்பனை செய்து வருகின்றனர்.

இந்த ஆண்டு இந்தியா முழுவதும் பருவமழை விவசாயத்திற்கு ஏற்றப்படி நன்றாக பெய்துள்ளது. இதனால் துவரம்பருப்பு, கரும்பு, மல்லி, உளுந்து, மஞ்சள், பூண்டு உள்பட அனைத்து பொருட்களின் விளைச்சலும் அதிகரித்து உள்ளது. கடந்த மாதம் ஒரு கிலோ குண்டு மிளகாய்வத்தல் ரூ.220-க்கு விற்பனையானது. நீள மிளகாய் கிலோ ரூ 130 வரை விற்பனையானது.

பூண்டு ரூ 140 வரை விற்பனையானது.

இப்போது எக்கச்சக்க விளைச்சல் இருந்த போதும், எந்தப் பொருளின் விலையும் குறையவில்லை. மிளகாய், பூண்டு போன்றவை இப்போதும் கிட்டத்தட்ட இதே விலைக்கு விற்பனை செய்யப்படுகின்றன.

கரும்பு விளைச்சல் பெருகி, சர்க்கரை உற்பத்தி அதிகரித்துள்ளதால், விலை கணிசமாக குறைந்துள்ளது. ஆனால் இன்னமும் சில்லறை விற்பனை கடைகளில் கிலோ ரூ 35 முதல் 40 வரை விற்கப்படுகிறது.

பருப்பு, புளி, தனியா என அனைத்து மளிகைப் பொருள் வரத்தும் அதிகரித்து, கொள்முதல் விலை குறைந்தாலும் சில்லறை மார்க்கெட்டில் விலை உச்சாணிக் கொம்பிலேயே உள்ளது.

சமையல் எண்ணெய் வகைகளின் விலை இன்னும் மோசம். விளைச்சல் அதிகரித்தால் விலை குறைவதுதான் நியதி. ஆனால் வியாபாரிகளின் பேராசை காரணமாக, அனைத்து வகை சமையல் எண்ணெயும் மேலும் விலை உயர்த்தப்பட்டுள்ளது. ஒரு முறை ஏற்றப்பட்ட விலையை எக்காரணம் கொண்டும் குறைக்க விரும்புவதில்லை சில்லரை வர்த்தகர்கள்.


English Summary: Though the production of all food grains and groceries increased nationwide, the retail sellers adamantly keeping the high price for all the items.

We cultivated Turmeric in 10 acres and spent nearly 5L and the prices has gone down where I am getting only 3L. But the price of turmeric remains the same in the shops. So who is swallowing the whole difference, its the middle man and the shop owners. This is the main reason we need Walmart and likes in India to get ride of these farmers blood sucking devils.

[murlee]

TN stamp duty income up 30%

Tamil Nadu's revenue through stamp duty and registrations has jumped over 29 per cent between April-December 2011, compared with the corresponding period last the previous year.

According to an official press release, the Registrations Department has reported a revenue of Rs 4,744.40 crore in the current year, which is Rs 1,073 crore higher than the previous year's collection at Rs 3,670.77 crore. The State Government has set a target of Rs 6,492 crore revenue for the current year. On the ‘Samadhan' a conciliation effort to settle disputes under Section 47A of the Indian Stamps Act. 1899, relating to stamp duty based on the market value, the release said following the announcement of the scheme in November 2011, over 14,544 documents have been cleared with a revenue of Rs 79.13 crore as of January 21, 2012.

PENDING DOCUMENTS

There are over 39,812 documents pending under such dispute representing a potential revenue of Rs 541.31 crore. Revenue to the Government is locked up when there is a dispute relating to the stamp duty that has to be paid on the market value of the property that is being transacted. When the property is under valued or when the stamp duty is not paid, the Act provides for the issue to be referred to the District Revenue Officer (Stamps) or Special Deputy Collector (Stamps).

Under the Samadhan Scheme, the State Government waived one-third of the Registration Stamp Duty to be paid to enable the revenue to be freed and public get back their documents.

http://www.thehindubusinessline.com/...cle2837218.ece

[madurakarenda]

Originally Posted by geico2000

We cultivated Turmeric in 10 acres and spent nearly 5L and the prices has gone down where I am getting only 3L. But the price of turmeric remains the same in the shops. So who is swallowing the whole difference, its the middle man and the shop owners. This is the main reason we need Walmart and likes in India to get ride of these farmers blood sucking devils.

Uzhavar sandhai's were nice ideas (It won't be the brokers who will get benefits rather the farmer will sell his products and get the price for his hardwork). But, I don't know how effective is its implementation.

[krishnaswamy]

Originally Posted by madurakarenda

Uzhavar sandhai's were nice ideas (It won't be the brokers who will get benefits rather the farmer will sell his products and get the price for his hardwork). But, I don't know how effective is its implementation.

Uzhavar Sandhai's shops are taken by middle men only.
good scheme. but poorly utilised

[kongutamizhan]

x-posting

Originally Posted by kongutamizhan

http://timesofindia.indiatimes.com/c...w/11693391.cms

Current situation crippling industry

COIMBATORE: In light of the pervasive power crisis in Western Tamil Nadu, Coimbatore Tirupur Micro and Cottage Entrepreneurs Association (COTMA) submitted a petition to the collector on Monday, grievance day, demanding unsuspended power supply to industry.

Though the state government had announced a scheduled two-hour power cut each day, the unscheduled cuts run over six hours each day, creating problems for industry, said S Ravikumar, president, COTMA.

There are more than 30,000 micro and cottage industries in the district. About 50 per cent of the work in these industries has been affected by unscheduled outages, he said. Firms are losing job orders and employers are finding it difficult to pay back bank loans, Ravikumar said. Low production and high losses have forced them to sell their machinery to pay back loans and other dues. As much as 30% of the industries have reduced their machinery by half, he said.

If the power cuts continue, thousands of companies in Coimbatore will be forced to close, said M Loganathan, secretary of COTMA. While domestic companies are struggling, TNAGEDCO supplies uninterrupted power to foreign industries that have set up base in the state. Companies in Chennai face only an hour of power outage a day . The association requested the district administration to declare staggered power holidays to sort out the problem. They urged the government to distribute power to all companies equally.