RPCs in quandary over 5000 acres rule
Confusion reigned within the tea plantation industry following Finance Minister Ravi Karunanayake’s announcement of limiting the acreage owned by the Regional Plantation Companies (RPCs).
The proposal may mean RPCs lose about
28 per cent of their current land use.
It was announced that for “more effective management” the maximum acreage that can be held by any stand-alone company, without being allowed to consolidate will be restricted to 5000 acres. However, the government would ensure there would be no loss of employment on the plantations and that the RPCs would be “granted the first right of refusal, when being allocated land.”
However, this remained in ambiguity as most found it difficult to comprehend this fact.
Some sections however believe this limitation of the RPCs might be a good move by the authorities to ensure efficiency and effectiveness on the estates.
As part of an effective government land reform policy and the productive handling of the estates this is believed to be a good move.
However with some RPC estates having a land area of about 7000 hectares on average it is uncertain how the limitation of these properties to 5000 acres (little over 2,000 hectares) would be a vital option.
In this regard, authorities are likely to bring in new legislation and improve on the lease agreements already entered into with the RPCs since most were found to be defaulting in the payment of salaries to workers and lease payments as well.