Assam Industry Minister Pradyut Bordoloi Tuesday warned some tea companies and bought leaf factories in Assam against bypassing the Guwahati Tea Auction Centre (GTAC) while selling their products.
He said if these firms do not mend their ways, the government would stop all subsidies and tax benefits.
"I have written letters to some tea companies and bought leaf factories to sell their products through the GTAC," he said adding the state government was losing revenue.
Justifying the government move, the minister said it is only fair to sell products through the GTAC as the government had given lots of subsidies and huge tax benefits to these tea companies and bought leaf factories.
The minister, however, clarified not all tea companies were selling their products bypassing the GTAC.
"The production of tea has increased in Assam and the country. However, the quantum of sale through the GTAC has not increased," he said, adding while the state produced over 580 million kg tea last year, only 116 million kg were sold through GTAC.
"We cannot force companies to sell their products through the GTAC. But we are requesting them to sell through the GTAC so the state gets its share of revenue. However, some companies of Assam have been selling the lion's share of their products through auction centres located in other parts of the country," he said.
