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Business Economy


Sikand lauds support received by tea industry from Assam Govt

Kolkata, Mar 16 (UNI) Suneel Singh Sikand, Vice-Chairman, Indian Tea Association (ITA), on Saturday lauded the support received by tea industry from the Assam Government under the leadership of Chief Minister Himanta Biswa Sarma.
During the 133rd AGM of ABITA, held at Dibrugarh, Sikand welcomed the initiative of the Government of Assam to formulate the Assam Tea Policy which has enabling provisions for promotion of Assam Tea, according to a media release here.
Sikand hailed the Government of Assam and all stakeholders’ involvement in the celebrations of 200 years of Assam Tea.
He mentioned the various proactive steps taken by Govt. of Assam to boost the growth and progress of the tea industry in Assam.
The tea industry is confronted with formidable challenges which call for joint efforts of all stakeholders to overcome. Surging costs of production amidst perpetual increase in input costs without matching price realizations are retarding factors for growth.
Climate change induced declining yields, pest infestations and the consequent increased dependence on irrigation are additional costs. A long-term strategy to address the challenges in hand is required.
ITA has made a detailed representation to the Commerce Ministry highlighting several crucial issues including enhancement of RODTEP rate for Tea, restoration of Tea Board Incentive Schemes on replanting and factory modernization and several others to enable mitigation of high costs. Submissions also made to the Commerce Ministry regarding the long pending Tea Board subsidy claims.
On Production and Price front there is a decline by 11.72 Million kg in Brahmaputra Valley in calendar 2023 while all India production at 1367.7 million kg was almost at par with the 2022 level. Global production in 2023 was around 165 million kg higher.
Tea price trajectory of the last decade reflects a prolonged phase of stagnation and pushing a large segment of producers into crisis. Assam prices were down in 2023 – 2024 by Rs. 10 while North India by Rs. 15 per kg. It is imperative that tea prices should be remunerative for tea producers and keep pace with the rising inflationary trends, which unfortunately is not happening.
Regarding auction reforms, ITA commends Tea Board for constituting a Special Committee to bring about reforms in the auction system and make it more cost effective and attractive for all stakeholders.
Regarding 100 per cent Dust Auction, the three months trial should afford an opportunity to explore steps towards further quality improvement and better price discovery.
On Domestic Consumption, Sikand stated that a larger generic campaign is vitally required. He hailed the recent announcement of an outlay of Rs. 72 crores for tea promotion by Govt. of India which the Association had been advocating.
He urged Tea Board for creation of an exclusive fund for generic promotion campaigns in the domestic markets.
To bolster exports, the incentive available under ATISIS should motivate higher manufacture of orthodox which eventually helps in stabilizing prices.
The daily wage of tea garden workers in Assam has substantially increased. To be economically sustainable and afford the wage increase, productivity needs a serious relook, he added.
The cost on account of foodgrains given in kind is unaffordably high and the industry’s submission to Govt. of Assam for restoration of the erstwhile system of PDS allotment or monetization at affordable rate needs the Govt’s intervention with utmost priority.
As regards application of Government Schemes to tea plantations, he expressed his appreciation and gratitude to the Government of Assam for its initiatives from time to time in extending welfare schemes to tea garden population.
He commended the Assam Renewable Energy Policy 2022 which reflects the State Govt’s initiative to ease the adoption of renewable energy which in the true sense should be an inspiration to gradually make the transition from conventional sources of energy.
He stated that ITA Sustainability Cell’s initiatives on Women empowerment, health, hygiene, nutrition and child protection are replete with several success stories and requested cooperation from all quarters.
UNI SJC KK GNK
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