The Hindu : Business : Plea to restrict import of low-priced teas

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Thursday, Sep 28, 2006
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Plea to restrict import of low-priced teas

Special Correspondent

Tea Buyers Association seeks fund

KOCHI: A meeting of the Tea Buyers Association here has expressed concern over the unrestricted import of low priced teas that posed a threat to the domestic industry.

Addressing the annual general meeting of the Association here on Tuesday, Krishna Kumar J. Shah, outgoing president of the Tea Buyers Association, pointed out that sufficient care has to be taken by the Union Government to see that the unrestricted import of low priced teas did not result in a threat to the domestic industry.

He said that the Union Commerce Ministry's special purpose tea fund to improve productivity through a massive rejuvenation and re-plantation programme was welcome. He also welcomed the proposal to start India Tea Centres in Cairo and Tehran and the reported move to amend the decades-old Plantation Labour Act.

According to tea statistics for the year 2005, the North Indian production went up to 700.97 million kg from 634.5 million kg, and of South Indian to 227 million kilograms from 167.20 million kilograms. Thus the total production in India registered a growth of 15.75 per cent during the year 2005.

Mr. Shah said that the Cochin Tea Auction Centre could maintain its top position in terms of quantity and average auction price among the South Indiana Auction Centres. After years of sluggishness, the tea sector was now poised for a revival; tea production and exports were picking up and the prices have also improved. All these were matters for cheer to the industry, he noted.

Mr. Shah said that it was a matter of concern to the tea sector that adulterated teas were being freely marketed in Kerala. This practice was a threat to the genuine manufacturers of and dealers in tea, he said. This would also adversely affect the joint efforts to revive the tea sector and was a health hazard.

He urged the State government to take effective measures to eradicate the presence of adulterated teas from the market.

Mr. Shah said the time-tested and transparent tea auction system helped the growers get better prices and also contributed sizable revenue to the State exchequer by way of VAT.

It was rather painful that there has been a well-calculated move to upset the auction system levelling unfounded allegations such as cartelisation in tea auctions, Mr. Shah said.

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