GUWAHATI, Jan 2 – In view of ‘depressed price trend for the past three years’, the Consultative Committee of Plantation Association (CCPA) has drawn up an action plan to improve the current grim scenario by removing prevailing imbalances within the tea industry itself and bring about stability of prices of tea both in the domestic market and on the export front. The CCPA has underlined the need for increase in the production of orthodox tea to address to the problem of unfavourbale ‘orthodox:CTC’ mix which is constraining the country’s tea export. For the purpose, the CCPA has set a production enhancement target for orthodox tea by an additional 20 million kgs in North India alone which covers Assam and other tea producing areas in the Eastern India. For South India too a similar goal has been set.
The CCPA has also decided to draw up a detailed plan on conversion of CTC production to orthodox manufacture. In this regard the Tea Board has approved a scheme for 25 per cent capital subsidy on purchase and installation of orthodox machinery for implementation within the current plan period. However, the proposal still awaits the go-ahead from Government of India. In view of the crisis faced by the industry as of now, the CCPA has constituted an expert committee of producer-exporters and merchant-exporters from North and South India to formulate an export strategy and implement the same in orthodox tea markets. Sources in the industry informed that it would seek concessions from the Government of India regarding exports of orthodox and green tea. The industry wants the Government of India to review the need to do away with the Central Excise Duty in respect of tea manufacturing as under the prevailing system of trading, the Excise Duty cannot be passed on to the buyers and therefore, is a direct charge on production cost.
The industry has further urged the Government of Assam and West Bengal to withdraw the cess on green leaf as a temporary measure to provide cost relief to the industry till the pricess of tea in the market becomes remunerative again. Both these State Governments have been requested to review the electricity tariff which are the highest among the all tea producing countries. In order to ensure lower retail price of the drink that cheers, the tea industry has urged the State Governments of the country to grant essential commodity status to the item. The industry believes that lower retail prices will be instrumental in boosting sagging demand of the brew. In addition, the CCPA has vouched for more vigorous and wide scale campaign to promote tea drinking in India as part of a healthy lifestyle.