Tea production in Assam has remained stagnant for the last few years, though Indian tea has achieved high output, exports and price realisation in 1997.
The previous year saw tea production crossing the targeted 800 million kg mark in the country, registering a record production of 811 million kg.
According to sources in the Assam branch of Indian Tea Association (ABITA) in Guwahati, tea production in the state remained at around 400 million kg for the last three years, which could be attributed to bad weather.
In Assam valley, the average yield per hectare was around 1,900 kg, while it was over 2,200 kg in certain parts of the state. If some gardens can achieve better yield, there is no reason why other tea estates in the same tea growing areas cannot do so, the sources pointed out.
On the production front a lot of improvement could be done within the existing parameters if everyone associated with the industry became more accountable, sources said.
The association said that unless there was improvement in productivity, the tea industry would become uncompetitive in the near future.
Referring to the export scenario, ABITA maintained that overall tea export situation was satisfactory in 1997 even as the economy experienced sluggish growth on this front.
It may be recalled that before the disintegration of former USSR, tea exports was above 220 million kg, but in the early 90s it climbed down to 120 million kg and was now picking up following increased demands from CIS countries and other traditional importers. The Assam government had recently cut down the agricultural income tax from 65 per cent to 45 per cent. Addressing the associations annual general meeting (AGM) at Jorhat, ABITA chairman and tea planter Aboni Borgohain said that the tea industry was disappointed over the government decision of hiking cess on green leaves and urged for its reduction.
He however lauded the cut in the tax. The industry also lamented the increase in cess rate levied by the central government under the tea tax act and imposition of five per cent service tax.
All these have made the tea industry the highest taxed industry in the country, Borgohain said.
