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UNIT 8 INTERNATIONAL COMMODITY AGREEMENTS AND ORGANIZATIONS

Structure
8.0 ,8.1 8.2 8.3 8.4 8.5 8.6 Objectives Introduction Coffee: International Coffee Organisation Pepper: International Pepper Community Rubber: International Rubber Study Group Tea: International Tea Committee Coconut

8.6.1

8.6.2

The Asia and Pacific Coconut Community Coconut Genetic Resources Network

8.7 8.8 8.9 8.10

Cashew Common Fund for Commodities Let Us Sum Up Glossary Check Your Progress: Possible Answers References of Websites

8.0 OBJECTIVES
After studying this unit you should be able to: recognize the implications of international perspectives for plantation crops like Coffee, Tea, Rubber Spices etc.; discuss the importance of specific international trade agreements; and appreciate the role of international commodity organizations.

8.1 INTRODUCTION

Welcome to the world of plantation commodities, plantation crops are really covering the entire world both in terms of production and consumption. The benefits from the plantation commodities are universal. You will be happy to know that the coffee which is produced by your estate could be consumed any where in the world. Similarly, the Rubber or Pepper produced in Kerala is in uniqueness of plantation crops is that they are all commercial crops. The demand not only in India but throughout the world. This is the reason why They it produced in different regions as suited to the crop but are consumed are is significant to develop an international perspective of commodity which across is world. Say, coffee is produced in a few countries like Brazil, Columbia, the one interested in. but is consumed all over the world as a beverage. India and Indonesia Thus in the producing countries coffee is a crop of vital importance as a revenue earner. Producers of plalltation crops thus are essentially dependent on both Sincere countries produce crops at differentinternational and domestic ~narkets.

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Principles of Plantation Management

points of time as per the natural geographical region to ensure smooth flow of production to the market to avoid price fluctuations. Knowing these characteristics, even the importing countries will have their demand stretched over time to avoid unnecessary price increases due to sudden demand. Here comes the need for an understanding among market players both producers and buyers, to ensure a smooth market mechanism. This is achieved through formations of Industry Associations or Cartels and the like to strengthen their market position. TAUSthe need for international commodity trade agreements and organizations arises to ensure smooth working of such agreements among member countries. A prominent case in the point is that of OPEC (Organization for Petroleum Exporting Countries). In economics, it is called a Cartel. The OPEC group decides what should be production and at what price to be charged for. There are over time, many international trade agreements in various commodities from time to time. The effective implementation of such trade agreements is overseen by the international trade organizations. Some organizationsWorld Bank project of 1995 indicate a strongproblemsfor Findings of a also take care of production and marketing support encountered Commodity Agreements. They are given below:' International by the industry from time to time by sponsoring research in the member countries. Other important activities are conducting of in a world in International Commodity Agreements (ICAs)fit uneasilyinternational which seminars, markets are becoming globalized and increasingly competitive. market exhibitions and dialogue with UN Agencies and Regional Trade Development cooperation as preached by international agencies and as practiced b y policy - both agencies. typically democratically elected and non-socialist governments irz the major producing countries - emphasizes productive eficiency, product quality, and eflective marketing. This is a long wayfiom the ideology that gave central place to supply restrictions operating through central marketing boards and quota allocations. In today's less centralized, more competitive world, the winners and losers from commodity stabilization are more evenly distributed across producing and consuming countries. Commodity policy is no longer a matter of redistribution from consumers to producers. This institutional change has been reinforced by the widespread belief evidenced, for example, by the collapse of the international tin and coffee agreements - that commodity market stabilization through international agreements cannot succeed. In earlier decades, the belief that stabilization could and would improve the position of commodity producers provided the impetus for resolving some of the problems that intervention threw up. Since the collapse of the tin markets in 198.5, the belief that commodity market stabilization cannot work has undermined producers'willingness to try to resolve dificulties within existing ICAs reinforced the suspicion of consumers governments that these a preements were in non one 's interests.

' Policy research paper 1545,World Bank, 1995

In the current climate, encouraging competitive markets, state interventions International Commodity Agreements and are seen as requiring clearjustzjicationin terms of marketfailure. The Organizations existence of activefitures markets in all of the industries that have commodity agreements makes justzfication along these lines problematic. But the "commodity problem" has not disappeared, and producers may look for other mechanisms to raise prices from often very low levels in industries experiencing excess capacity. Development country governments may beforced to decide whether they prefer to see markets controlled by producer cartels (where they will lack representation) or under the auspices of international commodity agreements.
Source: The World Bank, International Economics Department, Commodity Policy and analysis Unit, November 1995

Some of the international organizations which play an important role in promotion of the concerned industries are given below: Association of Natural Rubber Producing Countries International Cocoa Organization International Coffee Organization International Rubber Study Group Common Fund for Commodities International Spices Research Group This is only an illustrative list. These organizations from time to time, frame the relevant trade agreements between the producing countries and the importing countries and other relevant agencies. It is to be understood that the countries with different economic backgrounds, specific plantation crops, be it Coffee, Rubber, Tea or Spice crops, may have different role to play in the We now study in detail belong. Hence, the importance and criticality will economy to which they about the international agencies and underlying agreements way a country may look at the prospects of an plantation influence theof Coffee, Tea, Rubber and Spices which are theindustry. crops covered unit.

8.2 COFFEE: INTERNATIONAL COFFEE ORGANISATION


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The lntemational Coffee Organisation (ICO) is the main intergovernmental organization for coffee, bringing together producing and consuming countries to tackle the challenges facing the world coffee sector through international cooperation. It makes a practical contribution to the world coffee economy and to improving standards of living in developing countries by enabling government representatives to exchange views and coordinate coffee policies improving coffee quality through the coffee quality improvement and priorities at regular high level meetings for: programme and specific projects, increasing world coffee consumption through innovative market development activities,

Principles of Plantation Management

initiating coffee development projects to improve quality and marketing, encouraging a sustainable world coffee economy, working closely with the private sector through a 16 strong Private Sector Consultative Board which tackles issues such as food safety, providing objective and comprehensive information on the world coffee market, and ensuring transparency in the coffee market through statistics. The ICO was set up in London in 1963 under the auspices of the United Nations because of the great economic importance of coffee. It has administered six International Coffee Agreements (ICAs), the most recent of which entered into force provisionally on 1 October 2001 and definitively on 17 May 2005. Its 77 Members include 45 coffee exporting and 32 importing countries, and it functions through the International Coffee Council, the Executive Board, Coffee is one of the world's largest traded commodities produced in more the than Private Sector Consultative Board, the Executive Director and a small 60 countries, Secretariat. providing a livelihood for some 25 million coffee fanning families around the world. Many of these countries are heavily dependent on coffee, which can account for over 75 per cent of their total export earnings. Among consumers coffee is a universally popular drink, with over US$70 billion in retail sales a year. ICO exporting Members account for over 97 per cent of International Coffee Agreement 2007 world coffee production and its importing Members are responsible for around The International Coffee Agreement 2007, the seventh Agreement since 80 per cent of world coffee consumption. 1962, . was agreed by the 77 Members of the Inteniational Coffee Council, meeting in London on 28 September 2007. It was formally adopted by the Council through Resolution 43 1. The Agreement will strengthen the ICO's role as a forum for intergovernmentalconsultations,facilitate international trade through increased transparency and access to relevant information, and promote a sustainable coffee economy for the benefit of all stakeholders and The new Agreement is an important instrument for development particularly cooperation of small-scale farmers in coffee producing countries. and will provide the legal framework for core activities undertaken by the Organization in the future. Around 15 of the ICO's 45 exporting Members are least-developed countries (with low incomes and high economic vulnerability), and the 25 million small coffee farmers and their families who produce 90% of the world's coffee are particularly affected by fluctuations in market prices and imbalances in supply and demand. The Preamble specifically acknowledges the contributiona new Chapter on the development and Important innovations include of a sustainable coffee sector to the achievement funding of internationally agreed developnlent goals, including the Millennium coffee development projects, and the establishment of a Consultative Development Goals, particularly with respect to poverty eradication. Forum on Coffee Sector Finance, responding to the need for increased access to information on topics related to finance and risk management in the coffee

sector, with particular emphasis on the needs of small and medium scale International Commodity Agreements and producers. The range of statistical data will be expanded enhancing Organizations market transparency and a new Promotion and Market Development Committee will oversee activities including information campaigns, research, capacity building Source: http/Avww.ico.org and studies related to coffee production and consumption. Coffee Board of India The Coffee Board of India setup by the Government of India plays a leading role for the overall development of the Indian Coffee industry. We studied the details about Coffee Board in the previous unit. You can also see the website: Cheek Your Progress 1 http//www.indiacoffee.org for more information. Note: a) Use the space below for writing your answers.

Q)

b) Compare your answers with those given at the end of the unit.
1) What is the need for international trade agreements and international organizations for plantation crops?

2) Which are the International Organizations for plantation crops?

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3) What is ICO? When is it established?

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4) Where is ICO located? What are its activities?

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Principles of Plantation

--------------------------5) What are the programmes launched by International Coffee Agreement


2007?

Management

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8.3 PEPPER: INTERNATIONAL PEPPER COMMUNITY


The International Pepper Community is an intergovernmental organization of pepper producing countries. The Community now includes Brazil, India, Indonesia, Malaysia, Sri Lanka and Vietnam as full members and Hainan Province (People's Republic of China) and Papua New Guinea as associate members. The IPC was established in 1972 under the auspices of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). The IPC Secretariat is located in Jakarta, Indonesia and is headed by an Executive Director. Membership to the Community is open to all pepper producing countries, on the unanimous consent of the existing members and by accession to the Agreement Establishing the Pepper Community. Representatives of member countries hold the office of Chairman. Each Chairman holds office for one year. The Community carries out its functions through its Secretariat based in Jakarta, Indonesia. The IPC Secretariat is hosted by the Government of Indonesia and is headed by the Executive Director appointed for a stipulated period at a Session of the Community. In executing its function the IPC Secretariat coordinates with member countries through a network of Liaison Officers who are responsible for the development of the pepper industry and national focal points which are dealing with pepper in their respective countries. The International Pepper Community maintains close contacts with the United Nations organization and its special agencies. In carrying out its functions smoothly and effectively, the Community consults and seeks assistance from these experts. and functions Objectives

The functions of the Community are to promote, co-ordinate and harmonize all activities relating to the pepper economy with a view to achieving the following broad objectives: co-ordinate and stimulate research on technical and economic aspects of production, including research on diseases affecting the pepper plant, research on development of disease-resistant and high-yielding varieties; the exchange of information on programmes and policies and facilitate on any other aspects relating to production;

~nternationa~commodity develop programmes for increasing consumption in traditional and Agreements and new Organizations markets, including programmes of co-operation in promotion intensify and co-ordinate research on new uses of activities; pepper; further joint action for the relaxation of tariff and non-tariff barriers and for the removal of other obstacles to trade; co-ordinate standard of quality so as to facilitate international marketing; keep under constant review developments relating to supply, demand and prices of pepper;

carry out investigations into the causes and consequences of fluctuations in the price of pepper and suggest appropriate solutions; improve statistical and other information on pepper production, consumption, trade and prices including techniques of production and consumption forecasting; undertake such other activities and functions as may be deemed desirable in the interests of the world pepper economy.
Source: http://www.ipcnet.org

Spices Board

Spices Board of India is setup by the Government of India to take care of the needs of all the stakeholders for all spice crops like pepper. In the previous unit, we have discussed the Spices Board in detail. You can visit the website: @ Check Your Progress 2 httpll www.indianspices.org for more detail. Note: a) Use the space below for writing your answers.

I Iis the organizational constitution ofPepper

b)at the end of Community? 1) What Compare your answers with those given International the unit.

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2) What are IPC's objectives and functions?

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Principles of Plantation Management

1 3)What is the role played by the Indian Spices Board for the promotion I

of Spices.

RUBBER: INTERNATIONAL RUBBER STUDY GROUP


The International Rubber Study Group (IRSG) is an intergovernmental organization recognized as an international body located in London, formally established by a Headquarters Agreement with the Government of the United Kingdom and Northern Ireland. Mission statement The International Rubber Study Group (IRSG) was established in 1944 as the only intergovernmental organization that brought the world's rubber producing and consuming stakeholders together. The IRSG shall be THE FORUM for the discussion of matters affecting the supply and demand for natural as well as synthetic rubber. The IRSG will be the authoritative source of statistical data and analysis for all aspects of the rubber industry including production, consumption and trade in rubber as well as rubber products. The seminal purpose of the secretariat is to prepare current estimates and analyze future supply and demand trends while undertaking statistical and economic Membership studies Membership of the IRSG isindustry so as to continually improveCurrently on specific aspects of the open to governments and industry. its value18 added countries and the European Community are contributing members: service to stakeholders. Belgium, Republic of Cameroon, Cote d'Ivoire, France, Germany, India, Italy, Japan, Malaysia, Nigeria, Russian Federation, Singapore, Spain, Sri Lanka, Thailand, United Kingdom and United States of America. Organizations involved or interested in the rubber industry can become member of the Panel of Associates (PoA), as described on a separate page. Members of the PoA are also Industry entitled advisory panel to become member of Panel (IAP) was established to advise the Study The Industry Advisory the Industry Advisory Panel, which advises on the work Group programme of study and to assist the on subjects for the IRSG Secretariat. Secretariat in carrying out its work programme. Its members represent all aspects of the world customer industry, commerce, research and technology and academia. Meeting several times a year, informal contact is maintained by the Secretariat throughout the year.

Economic Committee
The function of the Economic Committee is to monitor and review the economic and techno-economic items on the Secretariat Work Programme, and to make recommendations to the Group conceming the initiation, continuation and publication of papers. The Committee meets at every Assembly or Group Meeting. Membership consists of Member Governments and their advisors and is assisted by the Industry Advisory Panel. Statistical Committee

International Commodity Agreements and Organizations

r
b

The Statistical Committee is a standing committee which meets once per year in line with the Annual Group Meetings or Assemblies. The purpose of the committee is to review and evaluate the IRSG's statistical output. Membership of the Statistical Committee is open to all members of the IRSG, including Member Governments, Panel of Associate Members, other industry participants Secretariat and statistical experts. The Group is served by a small Secretariat, with the Secretary-General who is responsible to the Executive Committee and the Group, as its Executive Head. The Group's activities are financed mainly by contributions from Member Governments according to their relative annual production or consumption of Source: http// www.rubberstudy.com new rubber. Rubber Board The Rubber Board of India is set up the Government of India to train and turn the growers around to be successful plantation managers. We have studied this in detail in previous unit. You can also visit website: http/lwww.rubberboard.org @ Check Your Progress 3 for further detail. Note: a) Use the space below for writing your answer.
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b) Compare your answers with those given at the end of the unit.

1) How does the market mechanism take care to ensure a fair price realization for rubber?

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TEA: INTERNATIONAL TEA COMMITTEE


In the early 1920s, world exports of tea were around 3,10,000 metric tonnes per annum. Of this, 75 per cent came from British plantations in India and

Principles of Plantation Management

Ceylon and 9 per cent, from Dutch producers in the Netherlands East Indies. During this time the United Kingdom absorbed 60 per cent of total world tea exports. However, in the Netherlands East Indies, tea production increased dramatically and exports from JavdSumatra grew from 35000 tonnes in 1921 to 72000 tonnes at the end of the decade. In 1929, the British and Dutch producers, fearful of a world surplus and a subsequent drop in tea prices, agreed to restrict crop and exports on a voluntary basis. Unfortunately, the agreement was abandoned in 1931 with the British blaming the Dutch for failing to hold back the sale of smallholder leaf tea and for not bringing down exports. The British government, in an attempt to reinforce the position of its producers brought back import duty on tea with a higher levy placed on tea from outside the Commonwealth. In addition, exports were increased to markets outside the UK and the public were strongly encouraged through an advertising campaign to 'Buy British'. However, growth of production and exports from JavdSumatra continued, the world market was unable to absorb the additional stocks and supplies causing average prices An increasing friction between the British and Dutch Tea Associations, and of tea in Londonato fall todecline in a half pence prompted further in the prospect of further nine and the market, per pound, whilst Amsterdam, negotiations tea prices were lower still. to find a solution to the problem. The International Tea Committee (ITC) was a result of these negotiations and was set up in 1933 by representatives of the tca growers in India, Ceylon (Sri Lanka) and the Netherlands East Indies (Indonesia) to administer the Regulation Scheme under the terms of the International Tea Agreement, concluded on 9th February 1933, with the approval and support of the Governments of each of the three participating countries. In addition to its function as administrator of the regulation scheme, the ITC was to collect and compile statistics and information relating to tea production, exports, consumption and stocks in the producing countries as well as in all other countries. The scheme stayed in place until 31st March 1955 and was not thereafter renewed, but an agreement was reached between the governments of the participating countries for the continuance of the International Tea Committee as a centre for the collection and publication of statistics and other information relating to tea. In 1979, full membership of the ITC was extended to include consumer .countries and subsequently, new categories for Associate and Corporate members were introduced. In 1986, the ITC became a limited company. The International Tea Committee has been providing the tea industry with valuable statistical information for almost 70 years and is supported by many of the major tea producing and consumer nations in the world and aim to continue to produce timely, accurate, impartial data and to remain the definitive source of information for the industry. Statistical Services ITC records go back for 70 years. They provide specific tea statistics on a need basis for a charge. They also provide Monthly tea stats from around the world

at your fingertips. They also publish Tea Reports from time to time for the usage of producing and trading members.
Source: http// www.inttea.corn

International Commodity Agreements and Organizations

Tea Board of India


Tea Board of India is setup by the Government of India to guide and oversee the progress of tea industry in India. Unlike other crops Tea is grown in various areas with diversity; hence the quality differs and respectively commands a suitable premium. There is a need to rationalize the domestic marketing system. More details about Tea Board we have studied in Unit 7. You can also see website: httpll www.teaboardofindia.in for more information. @ Check Your Progress 4

Note: a) Use the space below for writing your answer.


b) Compare your answer with those given at the end of the unit. 1) What are the services made available to the growers and traders by the International Tea Committees?

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8.6 COCONUT
There are two international agencies which help in coconut marketing and development activities.

8.6.1 The Asia and Pacific Coconut Community


This body, initially formed with four member countries, has grown to a 15 member organization now. It conducts the annual technology forum called COCOTECH focusing on technology transfer and a development agenda, apart from implementing projects in production, processing, marketing as well as on information network. One of the initiatives of the European Economic Community is an organization called EUROTROP which was created a decade ago with the aim of promoting development activities in coconut and oil palm.

8.6.2 Coconut Genetic Resources Network

A network called COGENT was formed at the international workshop on coconut genetic resources held in Indonesia. COGENT, the International Coconut Genetic Resources Network founded by International Plant Genetic Resources Institute (IPGRI) is a global network of coconut producing countries aimed at improving the production and use of coconut and the conservation of its diversity. As a network, COGENT synergises the efforts of partners to strengthen coconut conservation and research programmes, and empower

Principles of Plantation Management

communities dependent on coconut for their livelihoods to adopt improved technologies and diversified production and marketing systems. Functions of member countries: nominate a country representative from an organization that is engaged in coconut research, commit to support the cost of the representatives' coconut research activities in the national programme, commit to exchange andlor provide information on coconut genetic resources in the country, commit to participate in germplasm exchange for conservation or multilocation variety trials subject to mutual agreement with other member countries and with COGENT and Bioversity, and commit to participate actively in studying the diversity of coconut germplasm in the country, and conserve, protect and maintainlenhance the diversity. At present, there are 38 member countries across regions of South-East Asia, South Asia, South Pacific, Africa, Latin America Caribean Islands. Members from South Asian region comprise of Bangladesh, India, Pakistan, Sri Lanka. The Central Plantation Crops Research Institute under the Indian Council of Agricultural Research (ICAR), Kasaragod, Kerala, India is the member institution in COGENT.
Source: www.cogentnetwork.org

Emerging agenda at the global level The coconut community is discussing the implementation of a Coconut Global Programme. The objectives of such a programme would be :

- to foster the development of improved coconut varieties, the control of


pests and diseases, the development of coconut-based ecosystems, the improvement of processing techniques, the production of valueadded coconut products, and the study of socio-economic issues affecting to strengthen and stimulate partnerships among stakeholders of the the community to increase the efficiency and cost-effectiveness coconut sector; of global coconut research efforts; - to offer access to information and documentation and disseminateresearch findings; and
- to provide training opportunities to researchers and technicians to improve knowledge and skills. their

Coconut Development Board, India The Coconut Development Board is a statutory body established by the Government of India under the administrative control of the Ministry of Agriculture, for the integrated development of coconut cultivation and industry in the country. The Board is headquartered at Kochi in Kerala State. Detail about Coconut Development Board is given in previous unit. visit the website: www.coconutboard.gov.in

8.7

CASHEW

International Commodity Agreements and Organizations

India is the largest producer, processor and exporter of Cashew in the world accounting for over 60 per cent of the global cashew kernel supply. The other major exporters are Vietnam and Brazil. At present there are no international organizations in support of cashew as a commodity. There are many commodities exported from India. Whether a commodity has an international agreement or an international commodity organization for facilitating and extending supportive role for nurturing trade, all parties involved should have an awareness of how the international agreements and commodity organization facilitzte the trade for their benefits.

8.8 COMMON FUND FOR COMMODITIES

At the international level, there are also some other organizations working towards the development of plantation crops like the Common Fund for Commodities. This is an inter-governmental financial institution established within the framework of the United Nations. The Fund's specific mandate is to support developing countries that are commodity dependent tofmprove and diversify commodities production and trade. It has a market development and poverty alleviation onentation and through a variety of project based initiatives, the Fund places a high premium on development of commodities-based economies upon which the producers and exporters depend for their The Fund currently has a membership of 106 countries. Institutional livelihoods. members include the European Community (EC), the African Union (AU), East African Community and the Common Market for Eastern and Southern Africa (COMESA). The Secretariat is based in Amsterdam, The Netherlands. Taking into account the experience gained in commodities by the Common Fund, in particular during its Five-Year Action Plan 1998 to 2002, shall contribute to reducing the economic imbalance between developed and developing countries, improving quality and productivity in a sustainable way, and aiming at predictable conditions in conlmodity trade" .

Check Your Progress 5 ote: a) Use the space below for writing your answer.
b) Compare your answer with those given at the end of the unit.
j What are the objectives a i d goals of Common Fund for Commodities?

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Fit e yeat a~.tioriplnrlfor Cotnmon Fur:d of Cor~l~wotlities2005-07, P I .

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Principles of Plantation Management

8.9 LET US SUM UP


International Trade is an integral part of management across plantation crops. Since the producing countries are different from the consuming countries there is a scope for various levels of activities. Research, Productions management, Marketing management and Financial management are integral part of such businesses. Hence there is need for a clear understanding of international commodity agreements and International Commodity organizations. In these liberalized times, the plantations managers need to enrich themselves with the understanding of international trade agreements and international 8.10 GLOSSARY organizations running them. ANRPC is an inter-governmental organisation, : Association of Natural formed to promote the overall interest of the Rubber Producing natural rubber community. Countries (ANRPC)

Cartel

A group of companies or countries which collectively attempt to affect market prices by controlling production and marketing. It - is an inter-governmental financial institution established within the framework of the United Nations. It is the main intergovernmental organization for coffee, bringing together producing and consuming countries to tackle the challenges facing the world coffee sector through international cooperation.

Common Fund for Commodities International Coffee Organization (ICO)

International Commodity : An agreement among producing and consuming countries to imp13ve the functioningAgreements of the global market for a commodity. It is administrative, providing information, or economic, influencing world price, usually using a buffer stock to stabilize it. International Rubber Study Group (IRSG)
It was established i n 1 9 4 4 as the only intergovernmental organization that brought the world's rubber producing and consuming stakeholders together. The MDGs represent a global partnership that has grown from the commitments and targets established at the world summits of the 1990s. Responding to the world's main development challenges and to the calls of civil society, the MDGs promote poverty reduction, education, maternal health, gender equality, and aim at combating child mortality, AIDS and other diseases.

Millenium Development : Goals (MDGs)

CHECK YOUR PROGRESS: POSSIBLE ANSWERS


Check Your Progress 1
1)

International Commoditv Agmmenis and Organizations

2)

The International Trade Agreemepts and International Organization for plantations crops are required to understand the market players, both producers and buyers to ensure an effective market mechanism and smooth flow of the produce to the market to avoid price fluctuations. This is achieved through formation of industry associations or cartels and the following are some of the International Organizations for The like, to strengthen their market position. Plantations crops: Association of Natural Rubber Producing Countries International Cocoa Organization International Coffee Organization
.

International Rubber Study Group International Spices Research Group

The International Coffee Organization (ICO) is the main intergovernmental organization for coffee, bringing together producing and consumer countries to tackle the challenges facing the world coffee sector through international cooperation. It was set up in 1963 under the 4) The International Coffee Organization is located in London (U.K.). It auspices of under the auspices of the UN to enabling government was set up the United Nations. representatives to exchange views and to coordinate coffee policies and priorities at regular high level meetings. 5) Important innovations of the International CoffeeAgreement 2007 include a new Chapter on the development and funding of coffee development projects, and the establishment of a Consultative Forum on Coffee Sector Finance, responding to the need for increased access to information on Check Your Progress 2 topics related to finance and risk management in the coffee sector, 1) The IPC was established in 1972, its Secretariat is located in Jakarta, with Indonesia emphasis on the needs of small and medium scaleall particular and is head by an Executive Director. It is open to pepper producers. producing countries and each Representative of the Member countries hold the office of Chairman for one year. In executing its function, the IPC Secretariatcoordinates with member countries through a network of Liaison Officers. The Community now includes Brazil, India, Indonesia, Malaysia, Sri Lanka and Vietnam as full members and Hainan Province (People's Republic of China) and Papua New Guinea as associate 2) The functions of the community are to promote, co-ordinate and members. harmonize all activities relating to pepper economy. 3) The Spices Board was constituted for the promotion of all spices through support for:

3)

Principles of Plantation
Management.

a) Technology upgradation. b) Quality upgradation c) Brand promotion d) Research and product development

Check Your Progress 3


1) Generally the Cash or spot market is the right place where price discovery is supposed to take place. In case of commodities, since there are a large number of producers with varying production capacities on the one hand, and there are equally diversified consumers as procurement agencies on the International commodity cash or spot markets to fulfill the task. The other, it is difficult for thefutures markets help in price discovery The as International commodity organisations help in price dissemination well as disseminationof price information and the volumes that are from being important spot as well as forward markets. traded. Commodity boards in consultation with the various players in the industry and the related government departments and agencies, arrive at price related decisions as well as support decisions like amending the export and import limits, announcing a need based subsidy or tariff Check Your Progress 4 etc. In addition to its can also put quantitative restrictions or offer 1) The government function as administrator of the regulation scheme, the incentives ITC helps to collect and for international trade. compile statistics and information relating to tea production, exports, consumption and stocks in the producing countries Check Your Progress 5 as well as in all other countries. 1) The objective of the Common Fund for Commodities is to support developing countries that are commodity dependent to improve and diversify commodities, production and trade.

REFERENCES: WEBSITE OF
Association of Natural Rubber Producing Countries International Cocoa Organization International Coffee Organization International Rubber Study Group International Tropical Timber Organization Common Fund for Commodities International Pepper Community.

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NOTES