Performance of the Plantation Sector During the COVID-19 Pandemic

Abstract

This study explores the impact that COVID-19 and its preventive measures would have on the plantation sector, covering four important crops—tea, coffee, rubber and cardamom. The study traces the channels through which the pandemic and the lockdown measures would impact the sector. These channels are the disruptions in seasonal operations, in factor and resource supplies; transport, storage and processing; marketing and sales; and demand conditions. These disruptions get manifested in price, quantity and revenue. These are estimated for the four crops separately. The total unrealised revenue due to the lockdown is estimated to be ₹38.4364 billion for the lockdown period from 24 March to 31 May 2020. This does not include the losses that are to be incurred due to the demand decline, supply chain disruptions and price fall that is to be manifested in future. This massive economic disaster is bound to have a severe impact on the plantation economy, especially the small growers and the labourers. Urgent measures need to be taken up to arrest the losses and revive the sector. Yet there is very little in the ‘Atmanirbhar Bharat’ package that would help tide over this economic crisis. Immediate measures aimed at demand rejuvenation, arrest of price fall, restarting of plantation operations and restoring of supply chains is called for. The vantage point of the commodity boards must be exploited to reach out to the stakeholders.JEL classification: M38, Q11, Q13, R11