Guwahati, Sept. 13: Representatives of the Assam tea industry will request Union commerce minister Kamal Nath to make sale of tea through auctions mandatory.
The tea industry hopes that the step will go a long way to cut down on the loss of revenue, the state has been incurring due to stock transfer by some companies.
The tea delegation will place its request at the Stakeholders? Conference on the Challenges before the Tea Industry, convened by the Union commerce ministry, on September 16-17. The crucial meet has been organised to evolve a strategy to bail out the tea industry from its current crisis.
?It is critical to Assam and should be critical to them (the industry) also. This is also one of the possible solutions to the crisis the industry is facing because of the falling prices,? said K. Katyal, convener of the delegation.
Assam occupies a crucial place in the tea industry by producing more than 50 per cent of the tea of the country. It also has the world?s third largest auction centre.
?Auction is the only forum for the entire industry, which helps set a benchmark for the price of tea and anything which dilutes it affects the price of tea. It is a well-tried out system created by the producers and they should encourage it,? Katyal said.
Senior officials of the Union and the state governments, tea producers, research and trade associations, labour representatives and finance institutions will attend the conference.
The conference will also review the existing policy and the legislations pertaining to the tea industry as well as the changes required for facilitating sustainable growth of the industry.
After holding talks with representatives of various stakeholders, the meet will finalise recommendations to chalk out a strategy.
Another official said attempt should be made to project those issues, which are in the best interest of the state, including routing all tea through the auctions. The committee on tea, constituted by the Assam government, has recommended that all tea be routed through the auctions.
Officials of the Indian Tea Association (ITA), who have been opposing the idea of routing teas through the auction, will be present at the meet. Even a committee appointed by the West Bengal government, has recommended 100 per cent sale of tea through auction.
The conference will also focus on improving the working conditions and capacity building of the tea garden workers. A substantial number of gardens still do not provide basic amenities to its workers and the representatives of the Assam Cha Mazdoor Sangha will raise the issue. The team will also include representatives from the Asom Cha Mazdoor Sangha and the Assam Small Tea Growers? Association.