NEW DELHI: India's tea production is likely to decline in the next fiscal as the biggest producing state Assam is witnessing a drought like situation.
“There could be some decline in tea output in the next fiscal as well as towards the end of this fiscal due to a drought-like situation in Assam,” Tea Board Chairman, Mr Basudeb Banerjee said.
Assam accounts for nearly half of India's total tea production. Though the country, which is the world's second largest tea grower after China, expects to achieve its output target of 960 million kg this fiscal, it has trimmed its export forecast by 5 pe r cent to 200 million kg due to less supply from the southern region.
India produced about 945 million kg of tea last year. If the output drops further in next fiscal from the 2008-09 level, shipments may suffer. An industry official said apart from Assam, tea output in the southern region, too, may be impacted by erratic monsoon, leading to a decline in exports next fiscal.
India shipped 157.78 million kg of tea overseas till January this fiscal, while production stood at 912.45 million kg. The country exported 179 million kg of tea in 2007-08 and produced 945 million kg.
Showing posts with label tea. Show all posts
Showing posts with label tea. Show all posts
Assam tea industry battles slowdown
By Apem
Guwahati, Mar 8 : Unfavorable weather conditions for tea plantations coupled with global slowdown have badly affected tea exports of Assam.
Statistics say that India, the second-largest tea producer in the world experienced a slump by 25 per cent in January 2009.
Indranil Sharma, a tea garden owner in Guwahati said that apart from the slowdown in exports, even the weather is playing havoc this season.
Owing to scanty rainfall the soil has literally dried up. Though dry spells are common in Assam but this year the spell is there for a longer period.
“The biggest problem we are facing is that all the water sources have dried up, we are having problem getting water for spraying and we have to collect water from outside source and do the spraying. Spraying process itself is a very costly process and we this year we had a n attack of loopers then we had an attack of holopets now we are expecting with this kind of dry weather rats to come in,” said Sharma.
Experts say that the tea industry depends on exports for its profits since the domestic per capita consumption of tea is not enough to survive on.
“A minimum of 200 million kilograms export of tea is required for the industry to survive. Anything over and above that is good for the survival. And our estimates say that this meltdown would last till 2010. We will feel the pinch till then,” said Dipanjal Deka, Secretary, Tea Board of India, Assam Branch.
Officials say that India’’s tea production in financial year 09, is expected to rise by only two percent to 1,000 million kg on the back of increase in yield from replantation and higher acreage.
Guwahati, Mar 8 : Unfavorable weather conditions for tea plantations coupled with global slowdown have badly affected tea exports of Assam.
Statistics say that India, the second-largest tea producer in the world experienced a slump by 25 per cent in January 2009.
Indranil Sharma, a tea garden owner in Guwahati said that apart from the slowdown in exports, even the weather is playing havoc this season.
Owing to scanty rainfall the soil has literally dried up. Though dry spells are common in Assam but this year the spell is there for a longer period.
“The biggest problem we are facing is that all the water sources have dried up, we are having problem getting water for spraying and we have to collect water from outside source and do the spraying. Spraying process itself is a very costly process and we this year we had a n attack of loopers then we had an attack of holopets now we are expecting with this kind of dry weather rats to come in,” said Sharma.
Experts say that the tea industry depends on exports for its profits since the domestic per capita consumption of tea is not enough to survive on.
“A minimum of 200 million kilograms export of tea is required for the industry to survive. Anything over and above that is good for the survival. And our estimates say that this meltdown would last till 2010. We will feel the pinch till then,” said Dipanjal Deka, Secretary, Tea Board of India, Assam Branch.
Officials say that India’’s tea production in financial year 09, is expected to rise by only two percent to 1,000 million kg on the back of increase in yield from replantation and higher acreage.
Assam tea industry seeks tax sops, other reliefs
Mumbai, Feb 14 : Faced with rising cost of inputs and prolonged low price realization for the past few years, the tea industry has asked the Assam government for some tax relief in the next budget. In a pre-budget memorandum submitted to the Assam government, the Indian Tea Association, which is an organization of leading planters of Brahmaputra and the Barak Valley of Assam, has mentioned that the crisis-ridden tea industry in Assam merits continued attention and measures from the state government to help it recouping accumulated losses and sustaining operations.
According to a report from Guwahati, the industry has made request for some specific relaxation on different types of taxes imposed on it in the state of Assam having over 800 tea estates. The ITA has requested for increase in deduction of agricultural income tax on tea exports from the state to the level of Rs 6 per kg from the existing rate of Re1 per kg. In fact, ITA has asked for total withdrawal of agricultural income tax on tea in Assam as has already been done by governments in Tamil Nadu and West Bengal to provide relief to the industry. If total withdrawal is not possible, the government should at least consider a moratorium on agricultural income tax on tea for at least six years.
The industry has also asked for certain relaxation of VAT rates in respect of tea sold through the Guwahati Auction Centre as well as on non-auction sale. Moreover, the tea industry, which is bound by the existing Plantation Labour Act to provide food grains and cereals at highly subsidised rates to over 6 lakh tea workers and their families, has asked for a zero VAT regime for the purchase of such cereals and food grains from government allocations.
According to a report from Guwahati, the industry has made request for some specific relaxation on different types of taxes imposed on it in the state of Assam having over 800 tea estates. The ITA has requested for increase in deduction of agricultural income tax on tea exports from the state to the level of Rs 6 per kg from the existing rate of Re1 per kg. In fact, ITA has asked for total withdrawal of agricultural income tax on tea in Assam as has already been done by governments in Tamil Nadu and West Bengal to provide relief to the industry. If total withdrawal is not possible, the government should at least consider a moratorium on agricultural income tax on tea for at least six years.
The industry has also asked for certain relaxation of VAT rates in respect of tea sold through the Guwahati Auction Centre as well as on non-auction sale. Moreover, the tea industry, which is bound by the existing Plantation Labour Act to provide food grains and cereals at highly subsidised rates to over 6 lakh tea workers and their families, has asked for a zero VAT regime for the purchase of such cereals and food grains from government allocations.
High tax rates hit Assam tea sector
GUWAHATI, Dec 28 : Tea industry in Assam has always been the victim of unaffordable level of State taxes and levies, which are the highest among all the tea-producing States in the country, said Shashank Prasad, president of the Tea Association of India (TAI). He also called for structural reforms in the industry to face the challenges. Addressing the 29th annual general meeting of the Assam Branch of the TAI at Jorhat today, Prasad said that the Government of Assam recently increased land revenue in the Brahmaputra Valley from Rs 10 to Rs 22 per bigha, that too with a retrospective effect of five year. In addition, the green leaf cess of 32 paise per kilogram has been imposed, while, all the other tea producing States withdrew it. He called upon the State Government to review the steep hike of land revenue rates to bring it to moderate level.
The TAI president said that the Special Purpose Tea Fund (SPTF), introduced by the Government of India to provide financial assistance to the fund starved tea industry, is yet to see the desired results. He pointed out that the utilization of the scheme remained below the desired level and called upon the planters of Assam to take up re-plantation programme at the right earnest. He also called upon the authorities concerned to review the procedural formalities for sanction and disbursement of funds, specially for the small and single-estate companies. He also said that the prolonged recession taught many lessons to the industry. “The industry has to be competitive to survive. The competitiveness can only be obtained by radically increasing productivity, both of land and labour. Substantial improvement of quality is also vital for the industry,” he added.
Prasad admitted that structural reforms in the tea industry was long overdue and said that the Plantation Labour Act should be reviewed immediately. He pointed out that the archaic provisions of the Act were lo longer valid in the modern times and said that the Government should take the burden of some of the social costs of the industry. He said that a large number of tea gardens of Assam have to bear substantial amounts to maintain the Assam Tea Plantation Security Force and under the present circumstances, the State Government should now bear the cost.
The TAI president asserted that the tea industry was determined to protect the employment of its existing employees, even when the cascading effect of the global recession adversely affected job security in several labour intensive industries in India. However, at the same time, he said that it might not always be possible to accede to the demands and aspirations of the employees at present.
Though after a long and unprecedented recession, tea prices increased this year, Prasad said that the global economic meltdown and slowdown of exports meant that the initial gains could not be maintained. He, however, welcomed introduction of E auctioning, which would help both the producers and buyers in the days to come.
The TAI president further said that the surge of bought leaf factories exposed the organized sector to an unequal and unfair competition as the small growers and the bought leaf factories are not shouldering the burden of the social costs.
The TAI president said that the Special Purpose Tea Fund (SPTF), introduced by the Government of India to provide financial assistance to the fund starved tea industry, is yet to see the desired results. He pointed out that the utilization of the scheme remained below the desired level and called upon the planters of Assam to take up re-plantation programme at the right earnest. He also called upon the authorities concerned to review the procedural formalities for sanction and disbursement of funds, specially for the small and single-estate companies. He also said that the prolonged recession taught many lessons to the industry. “The industry has to be competitive to survive. The competitiveness can only be obtained by radically increasing productivity, both of land and labour. Substantial improvement of quality is also vital for the industry,” he added.
Prasad admitted that structural reforms in the tea industry was long overdue and said that the Plantation Labour Act should be reviewed immediately. He pointed out that the archaic provisions of the Act were lo longer valid in the modern times and said that the Government should take the burden of some of the social costs of the industry. He said that a large number of tea gardens of Assam have to bear substantial amounts to maintain the Assam Tea Plantation Security Force and under the present circumstances, the State Government should now bear the cost.
The TAI president asserted that the tea industry was determined to protect the employment of its existing employees, even when the cascading effect of the global recession adversely affected job security in several labour intensive industries in India. However, at the same time, he said that it might not always be possible to accede to the demands and aspirations of the employees at present.
Though after a long and unprecedented recession, tea prices increased this year, Prasad said that the global economic meltdown and slowdown of exports meant that the initial gains could not be maintained. He, however, welcomed introduction of E auctioning, which would help both the producers and buyers in the days to come.
The TAI president further said that the surge of bought leaf factories exposed the organized sector to an unequal and unfair competition as the small growers and the bought leaf factories are not shouldering the burden of the social costs.
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