The Hindu Business Line : Leaf tea makers seek tax sops

ARISING from the controversy of the sales tax collection move of the Tamil Nadu Government, the Nilgiris Bought Leaf Tea Manufacturers' Association has appealed to the Tamil Nadu Chief Minister, Ms J. Jayalalithaa, to exempt tea sold through the Coonoor and Coimbatore auctions from all taxes.

"This is necessary to attract more buyers which, in turn, would help the prices to improve," the President of the association, Mr N.K. Krishnamoorthy, said in a memorandum to the Chief Minister.

He said this was needed to help the small-scale sector overcome the present crisis. "The entire Nilgiris district is passing through turbulent times for the fourth year in succession due to continued low prices and the small farmer is unable to bear it any further," he said.

Referring to the sales under the "Ooty Tea" project, he said the benefits were being passed on only to the growers attached to the co-operative Indco factories. "The large number of growers supplying the green leaf to the private bought leaf factories are not catered to by this project," he said. He also sought the volume bought for the project should rise to at least 1,000 tonnes per month so that "some respite is felt by the growers".

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