Weak cup for tea

The tea industry, which was expecting a special package from a pro-agriculture government's finance minister, was clearly disappointed with the budget.

The finance minister has proposed that the five per cent customs duty on some of the plantation machinery be extended to tea and coffee plantation.

C K Dhanuka, chairman Indian Tea Association (ITA) said that the move was welcome but, there was no joy for the industry in the budget.

Dhanuka was however hopeful that the commerce ministry could be working on a package for the industry, which would be announced before the next budget.

The finance minister also proposed that tractors attract an excise duty of 16 per cent, which would be fully exempt.

Dhanuka said, this would be a partial benefit for the industry but, nothing significant.

B M Khaitan, chairman of Eveready Industries India, echoed the same view. He said, "We feel disappointed as we expected the finance minister to look into the problems faced by the industry in the last four years."

N K Das, chairman, Tea Board admitted there was nothing special for the industry but, the Tea Board would submit its representations to the government.

Percy Siganporia, managing director, Tata Tea said that the nurturing and fostering of rural India, the weaker sections of society and the low middle class had provided a fillip to tea consumption after a lag of 6-8 months.

Basically, the increase in consumption was expected to be fuelled by rural demand. The finance minister had gone all out to put money in the hands of the poor and the industry was hoping that in some way that could benefit the tea industry.

Domestic consumption was looking up. Last year, consumption was round 693 million kg, which was an increase of 12-15 million kg, over the previous year.