Assam tea planters seek relaxation in norm

GUWAHATI: Tea planters in Assam have requested the commerce ministry to do away with the requirement of documentary proof for factories exporting 20% of their produce, saying it will hurt the state’s tea industry.

Under the tea quality upgradation and product diversification scheme of the Tea Board's XII Five-year Plan (2012-2017), there are 22 eligibility conditions, and documentary proof of export is one of the conditions for availing of the benefits.

Bidyananda Barkakoty, chairman, North Eastern Tea Association (NETA), in a memorandum to Union Minister of State (independent charge) for Commerce and Industry Nirmala Sitharaman, said, "It will be almost impossible for 90% of tea factories (both estate and bought leaf tea factories) in Assam to avail the QUPD scheme. Assam produces more than 50% of the country's tea from about 1,000 tea factories (including estate factories and bought leaf factories)."

Barkakoty said the condition has been incorporated to increase exports. "But in our country, 80% of the tea is exported by merchant exporters and only 20% by producer exporters. Therefore, a better scheme for merchant exporters may increase exports from our country."

He added that “we fear that if we are not able to avail the QUPD scheme, then quality of Assam tea may deteriorate. The tea market last year and this year has been rather indifferent, which will not allow us to have surplus for investment in machineries. We only have a few months left to avail of the scheme."

Although the scheme is on till March 31, 2017, receipt of applications will close on October 31, 2016.