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Rabindra Nath Sinha

KOLKATA, Feb. 17

WITH just about two weeks left to obtain certificates of registration with the licensing authority, as stipulated in the Tea (Marketing) Control Order (TMCO) 2003, the most pertinent question that arises is: Will tea buyers, large sections of whom protested the order and even filed writ petitions in High Courts, fall in line?

It appears that buyers will fall in line. Already there are indications of division in their ranks. Normal tea auctions are being held in most of the centres including Siliguri in West Bengal, where buyers use their clout to disrupt sales at the slightest pretext. Also, they have started picking up the prescribed forms for submitting applications for registration to the licensing authority, that is, the Tea Board.

The third reason that must be weighing with them is that the Governments of the tea producing States are all in favour of TMCO 2003, successful implementation of which will make transactions transparent and evasion of sales-tax difficult. In fact, the tough stance of the West Bengal Government against the disruptive actions of buyers in Siliguri explains the return of normalcy in sales there. In fact, keeping the Siliguri example in view, trade sources are certain that buyers here, who forced cancellation of Calcutta Sale 3 scheduled for February 10 and 11, will take note of the West Bengal Government's tough stance.

Why are buyers running out of options? They will simply be out of business if they do not get registered with the licensing authority. TMCO 2003, which was gazetted on January 1, 2003, stipulates: "No person shall carry on the activities of buying tea from any public tea auction licensed by Tea Board or directly from manufacturer of tea after sixty days of the publication of this order in Official Gazette except under a valid registration obtained under this Order."

Which means latest by March 3, buyers have to obtain certificates of registration if they are to continue tea purchases from either auctions or manufacturers directly. Given this position, it looks certain that the next few days will see buyers rushing to pick up Form C for filing their applications. Reliable reports have it that the licensing authority will try its best to process applications and issue registration certificates in seven-eight days.

The directive in the new TMCO will also apply to the large number of CST buyers in the three auction centres in south India - Coimbatore, Kochi and Coonoor. Such buyers, who pay one-time entry fee to get enlisted with the auction organisers, procure their requirements through agents who are registered with the auction organisers. As their supplies are meant for the trade in States other than Tamil Nadu and Kerala, they pay central sales tax. That explains why have come to be referred to as CST buyers. But, post-auction delivery orders are issued in their name.

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