Tea growers slam mandatory auction plan

Indian Tea Association (ITA) has expressed concern over the state government's recommendation of 100 per cent sale of tea through the auction system.

In a press release, C K Dhanuka, chairman of ITA, said the association has consistently opposed any mandatory stipulation. ITA said the choice of channels should be left open to individual producers to derive maximum value.

The recommendations were made by a committee constituted under the chairmanship of Sabyasachi Sen, principal secretary of the commerce and industries department of the West Bengal government. The committee's recommendations has been forwarded by the state government to the tea industry prior to a formal notification.

Dhanuka said, "This stipulation could choke off private marketing initiatives, which have been pursued by individual companies to establish their own channels for sale and through which they continue to derive significant value for their produce".

However, ITA said the move to review the 1969 agreement relating to maintenance of employment levels and its firm observations for improving labour productivity in the tea gardens was a positive step.

"This is completely in consonance with the ITA's own initiatives to bring these matters on the discussion table with the operation of trade unions in West Bengal" said Dhanuka.

The ITA felt it would be necessary to achieve a 15-25 per cent reduction in the cost of production relating to labour to maintain viability.

The association also welcomed the recommendations relating to spreading the incidence of salami in the case of lease renewals of tea gardens on transfer in installments over 30 years with a moratorium on payment for the first two years.

The present concessional salami rate would continue for further two years beyond March 31, 2004.