The Centre announced Rs 3,000 crore (Rs 30 billion) allocation for the plantation sector during the 11th Plan period, which is almost three times higher than the 10th Plan funding.

Addressing a convention in Coonoor, Union Commerce Minister Kamal Nath declared the setting up of a committee to determine the pricing mechanism for small tea growers and the formation of a special purpose vehicle to encourage the plantation sector to earn carbon credits.

The plantation sector was dominated by small growers to the extent of 60 per cent. The industry directly employed 20 million people and contributed 9 per cent of agricultural exports.

The demographic landscape of the plantation industry was fast changing. The sector, which had 5 per cent of small growers 12 years ago, now constituted 22 per cent, the minister said.

He said the committee for the price mechanism would be formed within two weeks and would be asked to submit proposals within a short time.

The committee would have commodity traders and growers as its members.

In an effort to make the Indian coffee cultivation sustainable, the Coffee Board has also submitted a proposal under the 11th Plan to develop new technologies and techniques.

Addressing the meet, Coffee Board chairman G V Krishna Rau pointed out that low-cost producers were eating into the country's share in the global coffee market.

The board has submitted three schemes under the 11th Five-Year Plan. The schemes are aimed at addressing and developing technologies to make coffee cultivation sustainable, improving transfer of technology, developing infrastructure in R&D and evolving appropriate tools to improve labour productivity, Rau explained.