The Hindu Business Line : Tea exporters to get market growth assistance

TO give a boost to drooping tea exports, the Union Commerce Ministry has decided to extend market development assistance to orthodox and packet tea exporters during the last three months of the current financial year.

This was announced by Mr L.V. Saptarishi, Additional Secretary in the Union Commerce Ministry, at the 38th Annual General Meeting of the Tea Association of India here on Friday. The Government will provide assistance of Rs 2.50-3.50 per kg to exporters of orthodox and packet teas.

Later, talking to reporters, he said that scheme had been given in-principle clearance by the ministry but the finer details would be announced next week. "The money will be given for market access initiatives. It will help exporters in finding new markets and quality-packaging their products,'' he said.

Mr Saptarishi said the scheme would be effective for only three months — January-March, 2001-02. "The aim is to restore tea exports to last year's level. We wish to help the tea industry regain lost ground. After that is achieved, the scheme is likely to be withdrawn,'' he added.

In fact, the organised tea industry has been claiming for some time that its high production cost is primarily due to the piling up of social expenses like education, and other living costs of workers in the northeast. The Government has agreed to reimburse these expenses.

However, Mr Saptarishi said the industry would have to provide a clear statement of the social costs involved. "Once they give that statement, we can work out with other social ministries and try to find out a solution whereby these costs can be reimbursed. I compliment the tea industry on the work done by them on these counts,'' he said.

The tea industry's complaint against small growers and bought-leaf factories on different counts was rejected by the senior bureaucrat. He said this particular section of the industry was a reality and the organised sector had to try to create a partnership with it for the larger interests of the industry.

"You must look at the changes and try to reposition yourself in the industry. You can also relocate the bought-leaf factories adjacent to your gardens to utilise their benefits better,'' he said.

Mr Umang Kanoria, the outgoing President of the association, urged the Government to increase import duty on tea to 150 per cent from 70 per cent, abolish the central excise duty and reduce the existing sales tax of eight per cent by shifting tea from the general goods category to the essential goods list.

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