The Hindu Business Line : Tea planters against curbs on marketing

Addressing the 110 UPASI annual conference in Coonoor today, Mr. P.S. Walia, President of UPASI, expressed his concern that the Tea Board at its board meeting held last week has decided to recommend to the Commerce Ministry, 100 per cent mandatory sales through auction.

``Tea supplies are plentiful and a surplus situation has developed. Prices are at rock-bottom levels. Producers do not want to be held captive at auctions by buyers. What is the rationale ad justification for us being compelled to sell through auctions at Rs 30 to Rs 40 per kg when our cost of production is Rs 60 per kg. Why should we be denied the opportunity of selling our bulk tea directly in the retail market and benefit from the higher consumer prices,'' the UPASI chief argued

He appealed to the Union Commerce Minister, Mr. Arun Jaitley, to allow producers the freedom to sell at auctions, sell bulk tea directly and sell in consumer packs or export

Commenting on the current domestic scenario, he cautioned that tea plantations will disappear from the map of South India if the protracted financial crisis faced by them goes unaddressed.

"It is important in this context to highlight that about 12 lakh growers - most of them small and tiny - cultivate the plantation crops in South India covering nearly 10 lakh hectares providing round the year permanent employment to nearly 12 lakh labour. Additionally, about 25 lakh persons are dependent on activities ancillary to the plantation products.

"Hence it would hardly be an understatement that we need to evolve strategies focussed on turning the plantation sector not only a remunerative industry but one that can keep pace with the competition and changes that globalisation brings with it. We have, however, no magic wand or Alladin Lamp to remedy the situation as the problems are deep-rooted,'' Mr Walia said.

While welcoming the price-sharing formula for small growers provided for in the Tea Marketing Control Order, the UPASI president said it should be evolved pragmatically in consultation with the industry.

Expressing concern over the unbridled and long-haul movement of green leaf, the UPASI chief suggested that small growers could be assigned tea factories in their respective panchayat to avoid inter-regional movement. "This would greatly aid in and prevent spread of disease as well as retain inherent quality of the leaf,'' he said.

Referring to the widening price gap between producer and consumer, he urged the Government for a price recovery mechanism that would reflect the supply-demand dynamics.

As an industry initiative, UPASI is in the process of setting up a tea futures exchange. While an in-principle licence has already been obtained from the FMC, he requested the Commerce Ministry and Tea Board for an early clearance of their submission.

Mr. Walia also urged Mr Jaitley to arrange a joint meeting of the plantation industry, the Finance and Commerce Ministry with the ministers and officials attending so that the entire gamut of problems facing the industry may be discussed and solutions decided upon in a timeframe.

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