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Assam tea industry draws up list of sops

Guwahati, May 18: The Assam tea industry has drawn up a long list of sops it wants from the Centre on the eve of Union minister of state for commerce Jairam Ramesh?s visit to the state.

Ramesh is scheduled to arrive here tomorrow to hold talks with various trade bodies, including the CII and Finer.

As tea is likely to gain top priority in these meetings, the industry has decided to make the most of this opportunity.

Industry officials have decided to seek an increase in the subsidy of orthodox tea, which is preferred the world over. At present, producers are getting a subsidy of Rs 4 per kg on production of orthodox tea, which officials feel should be raised to Rs 8.

The officials have decided to ask the minister not to make it mandatory for the industry to sell tea through the auctions in a free market economy.

The tea industry will also seek exemption from social cost, which is now borne by tea plantations towards housing, hospital, education, roads for workers and dependants.

According to recommendations of the inter-ministerial committee, both the Union and state governments should bear a part of the social cost, which is responsible for the high cost of production of Indian tea.

?Rural development programmes should be implemented in the tea gardens as well,? an industry official said.

The idea of a reward for enterprising producer-exporters and merchant-exporters to boost export of tea will be mooted at the meetings.

Industry officials have decided to ask the Centre to persuade Pakistan to grant India the status of the most favoured nation in tea trade and allow duty-free import of Indian tea.

?There has to be some specific measures for promoting exports from the Northeast to the neighbouring countries and the Centre should think on these lines,? an industry leader said.

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