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Saturday, Nov 24, 2007
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Tea industry asks government to share social security cost

Sushanta Talukdar

It was bearing burden cast by statutory provisions: CCPA chief

Production of orthodox tea expected to increase to 140 million kg in about five to seven years
Urged to adopt the “Mc Donald approach,” known for standardisation, calibration and uniformity

Guwahati: The tea industry has urged the government to share the cost of social security to inject competitiveness into the plantation sector even as Union Minister of State for Commerce Jairam Ramesh on Thursday urged the industry to get out of the “Burra Sahib” and lethargic club mentality and respond proactively to the productivity challenge in order to survive in the changing market.

Welcoming the delegates to the India International Tea Convention (IITC), 2007, here, Consultative Committee of Plantation Associations (CCPA) Chairman Aditya Khaitan said the industry had been bearing, somewhat disproportionately, the burden of welfare cast largely by statutory provisions framed around the time India gained independence.

Mr. Khaitan insisted that in the backdrop of the change taking place, “the State sector should share a part of the cost of social security to inject a fresh dose of competitiveness into the plantation sector, and in doing so, free it to concentrate its energies on what it should be doing best — producing tea at the most competitive cost and expanding and servicing markets with alertness and vigour.”

Speaking at the inaugural function, Mr. Ramesh also urged the industry to “export what other people want and not what we produce.” He said Indian tea was facing the biggest productivity challenge as it had already been overtaken by Sri Lanka, Kenya and Vietnam, and failed to explore new markets.

Mr. Ramesh said the country was expected to increase production of orthodox tea to 140 million kg from the present 80 million kg in about five to seven years with a subsidy input of about Rs. 100 crore.

He pointed out that traditional CTC buyers in Russia had shifted to orthodox which called for more attention in its production.

About 400 delegates, including 35 from 10 countries such as Russia, Egypt, U.K., Egypt, Sri Lanka, Kenya, UAE, Thailand, and Bangladesh are participating in the three-day first leg of the convention billed as the “Great Indian Tea Party.”

It was formally inaugurated by Assam Chief Minister Tarun Gogoi.

Mr. Ramesh said while the country had been exploring new markets, Pakistan, being the second largest buyer in the world, was “a very very important market for Indian tea.”

He said export to that country was expected to go up from the present 10-12 million kg to about 30 million kg in the next five years.

He urged the industry to adopt the “McDonald approach” which, he said, was known for standardisation, calibration and uniformity.

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