In view of geographical disadvantage and hazardous road and rail communication, the Tea Association of India (TAI) has asked both the Centre and the Assam government to provide transport subsidy to Barak Valley growers.
Addressing the 42nd annual general meeting of TAI, its President Shashank Prashad has pleaded for the introduction of a transport subsidy for inputs required for tea plantation and factory as well as for dispatching produced teas from the districts of Cachar, Karimganj and Hailakandi of Barak Valley to the auction centres, for inclusion in the Assam Industrial Policy.
Prashad said that the SN Menon Committee, which was constituted to study the issues concerning the competitiveness of the Indian tea industry in the international market, too had recommended for preparing a comprehensive package for the tea industry in Tripura and Barak Valley with the involvement of both central and state governments in view of the extreme backwardness in infrastructure in the region.
The tea estates situated in Barak Valley and Tripura suffer from geographical disadvantage due to hazardous rail and road communication, which have since turned worse in the repeated floods and insurgent activities. Resulting from the poor infrastructure, cost of production, as well as the cost of delivery and despatch is much higher in Barak Valley and Tripura, which essentially is in mismatch with the price realisation, feels the tea industry.
Besides, TAI has also reiterated its demand for reduction in the annual land revenue rates substantially in Assam. It feels that the incidence of taxation at the state level is the highest in Assam. Organised tea sector has to pay a green leaf cess of 32 paise per kg and 29 paise per kg in Brahmaputra Valley and Barak Valley respectively.