Assam's Industry Minister Pradyut Bordoloi warned to withdraw subsidies and tax benefits of the tea companies

GUWAHATI: Assam industry minister, Pradyut Bordoloi has warned to withdraw subsidies and tax benefits of the tea companies and bought leaf factories (BLF) which are bypassing Guwahati tea auction centre ( GTAC) in terms of auction sale.

The state government will make it mandatory for tea producers to obtain certificate from GTAC for availing subsidy and other incentives.

The industry minister who is also the chairman of GTAC while addressing media persons in Guwahati on Tuesday said that there is a section of tea producers who do not route any portion of tea through the GTAC.

The government has identified around 12 such companies and started sending letter to them to route lion share of produce through the auction. Besides there is other which send small portion of tea to auction centre, the minister said.

Assam produces around 550 million kgs (mkgs) of made tea and only a paltry of 27.5 per cent is routed through the GTAC.

Bordoloi added, "If we have given tax breaks, subsidies and fertile piece of land for tea industry, we to expect some kind of tax. Assam losses around Rs 20 Crore annually as those bypassing GTAC resort to stock transfer and other means of sale."

There around 800 estate factories and 242 BLFs in Assam. Bordoloi said, "From my interaction with buyers across the country, I have found that they have been given impression that inferior quality of come to GTAC."

He explained to address all this issues Assam government will come up with an integrated tea park in the outskirts of Guwahati. Already a project management consultant is engaged for the project and 500 bighas of land is allotted for the park which will have integrated retailing, blending, packaging and township. The park is expected to come up in next three years time.

In 2012 GTAC auctioned 160 mkgs of tea. He said, "More tea auction in GTAC will mean better price realization for the green leaf produced by small tea growers. It will help in strict implementation of Tea Marketing Control Order (TMCO) 2003. We will also do charity auction sale on December 3 this year."

Secretary of Tea Association of India, Guwahati, Dipanjal Deka said that it will good for the industry if more tea are routed through the auction.