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Policy for Joint Ventures in Plantation Sector

The Indian government has introduced a dedicated policy framework to promote joint ventures (JVs) in the plantation sector, targeting commodities such as tea, coffee, rubber, spices, and palm oil. This initiative is led by the Ministry of Commerce and Industry, in collaboration with commodity boards like the Tea Board, Coffee Board, Rubber Board, and Spices Board of India. The policy aims to attract private investments and international collaborations to modernize cultivation practices, improve processing and packaging, and expand exports of plantation products.

Under the policy, joint ventures are encouraged to invest in sustainable plantation management, rejuvenation of old estates, value-added processing, and organic farming. The government offers support in the form of capital subsidies, land leasing facilitation, and financial incentives through schemes such as the Plantation Human Development Programme (PHDP) and Price Stabilization Fund (PSF). Additionally, the government permits 100% foreign direct investment (FDI) under the automatic route in coffee, rubber, and spice plantations, subject to specific state and environmental approvals, making it easier for global firms to form strategic alliances with Indian growers and cooperatives.

Joint ventures that incorporate technology transfer, climate-resilient farming methods, and skill development for plantation workers are given priority status for regulatory clearances and export benefits. The policy also emphasizes traceability, certification (such as Fairtrade and Rainforest Alliance), and adoption of sustainable supply chain standards to boost global competitiveness. With this policy thrust, the government aims to enhance productivity, income levels, and export earnings, while positioning India as a global leader in ethically produced, high-quality plantation commodities.

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