Aragalur

Government urged to save tapioca industry

The Hindu - Monday, Dec 06, 2004
Government urged to save tapioca industry

By Our Special Correspondent

SALEM, DEC. 5. The tapioca growers and sago industrialists have urged the Tamil Nadu Government to participate in the public hearing on the Safe Guard duty on starch and modified starch (MS) being organised by the Office of Director-General of Safe Guard in New Delhi on Decmber 6.

This would save the domestic sago and starch industry, which has suffered because of heavy imports from Thailand.

The farmers and industrialists in Tamil Nadu and Kerala, where this agro-based industry thrives, claim that they are facing "sure death" against the heavy imports of sago and starch products being imported from Thailand with a low price tag, particularly after the World Trade Organisation agreement on free trade.

They have been clamouring for increase in the import duty on the starch imports to save the domestic industry and its farmers.

The imports have increased from 1,000 tonnes in 2001 to a staggering 7,000 tonnes in 2003. As a result, nearly 300 sago and starch units in Tamil Nadu have been closed. "The remaining 450 units are facing a bleak future and hence something has to be done to save them from total annihilation," said the United Farmers' Association-Tamil Nadu, president, C. Vaiyapuri.

The industry was undergoing a crisis, throwing lakhs of farm workers and growers out of employment for nearly two years now, Mr. Vaiyapuri, who is leading a team of tapioca farmers to the Delhi meeting, told the The Hindu .

Recurrent drought

Recurrent drought had added to their woes. "After a strong lobbying, we were able to increase the import duty from 30 per cent to 50 per cent. But the continuance of heavy imports from Thailand has upset our efforts. The entire industry is in the doldrums now," he said.

The farmers were unhappy over the State Government's silence. Barring a few half-hearted attempts by the Salem district administration, no effective measure to save the industry had so far been initiated. The "Sagoserve," the society of the farmers, industrialists and traders, had its own limitations.

The Government was yet to withdraw the State Agriculture Marketing Cess on tapioca, a tuber-bearing plant that decayed in 24 hours. "The State should send an expert team to present the industry's plight before the public hearing strongly," said Mr. Vaiyapuri. The Central Government should remove tapioca starch and sago from the list of Open General License and include them in the list of Restricted List. The Safe Guard duty should be increased to 150 per cent.

The farmers said that the WTO had pointed out that the Safe Guard duty could be permitted temporarily when the domestic industry suffered because of increase in imports and needed some time to adjust itself.