Tea industry in crisis says Indian Tea Association in public appeal

GUWAHATI: At a time when specialty tea is scaling new heights in the auction centre, tea industry on Thursday issued public a public appeal asking government to ban expansion of tea for at least five years and provident fund (PF) contribution of workers to be taken over by the state government for three years to provide relief to the industry.

Indian tea association (ITA) in a public appeal said, “Viability of tea sector critical for security of employment of the million plus workforce.” ITA said that tea sector is incurring losses due to rising costs and stagnant prices.

Recently a delegation of tea industry met Assam government officials, seeking intervention.


The ITA appeal stated, “PF contribution for workers to be taken over by government for three years to provide immediate relief besides providing substantial fund for generic promotion of tea in India and fixing minimum reserve price for tea in auction based on cost of production.”

On Wednesday lastOrthodox Golden Tea tips have created history by fetching the highest price Rs 70,501 per Kilogram in Guwahati Tea auction Centre. Just a day ahead a kilogram of Manohari Gold Tea on Tuesday commanded Rs 50,000 per kg.

Assam is the largest producer of tea in India and accounts for 52 percent of India’s tea. In 2018, Assam’s production touched 692 million kgs. According to Tea Board figures, about 49 percent of tea produced in Assam is from the green tea leaves of small tea growers.

Assam finance minister, Himanta Biswa Sarama tweeted, “Tea Industry in Assam is passing through a critical phase. In order to extend support to it, the Assam Assembly has passed a Bill withdrawing cess on green leaves w.e.f. April 2019. The revenue implication for govt for this will be Rs 100 cr per annum.”

Assam assembly on Thursday approved three-year exemption on levy of cess on green leaves for big tea gardens. The green leaf cess presently for big growers is forty paisa per kg.