Tea cess hike irks industry

Guwahati, Feb. 21 : The tea industry today urged the Assam government to hold discussions with it before undertaking any revenue-generating exercise.
P.K. Nanda, the chairman of the Assam Branch of the Indian Tea Association, said the “insensitivity” of the state government to the tea industry had been demonstrated again with the hike in cess from 32 paise to 40 paise per kg of green leaf.
“This revenue-generating exercise of the government will further burden the recession-hit tea industry. We would urge upon the government to engage the industry in discussions prior to undertaking any revenue-generating exercise,” Nanda said at the 120th annual general meeting of the Assam Branch Indian Tea Association in Jorhat today.
The green leaf cess was enhanced last month. The move would mean a burden of Rs 2 per kg of made tea.
“Cost control will continue to be our major concern with labour wages comprising 50 per cent of our total cost of production. Our sustainability in the long run will entirely depend on how we manage this cost,” Nanda said.
As chief guest, former BBC correspondent Mark Tully spoke on the need to have the right balance between tradition and change.

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