Crisis-ridden tea industry seeks sops in Asom

Guwahati, Dec 29: The crisis-ridden tea industry in Asom has knocked at the doors of the state government requesting for some sops as relief.

In a pre-budget memorandum submitted to Chief Minister Tarun Gogoi, the Tea Association of India (TAI) requested that the collection of agricultural income tax should be kept on a hold for at least three years to help tea gardens invest fund for development of estates and factories. The TAI pointed out that some other tea-producing states have already granted such exemptions to the tea gardens in view of the unprecedented crisis dogging the industry.

The planters association renewed demand for exemption from payment of green leaf cess for a period of three years. In Asom, tea gardens have to pay cess at the rate of 32 paise per kg in the Brahmaputra valley and 29 paise per kg in the Barak valley. The rates are highest in the country.

The TAI asked for transport subsidy for the Barak valley gardens for both inward and outward movement of the items required for tea production as well as for transhipping made tea. Barak Valley gardens are affected by locational disadvantage and tea produced in those gardens fetch lower prices in the market compared to estates in Brahmaputra Valley.

The TAI requested for regular supply of power to tea estates especially those in Barak Valley which have been reeling under erratic power supply. Barak valley, the gardens are receiving only about 10 to 15 MW of power against the requirement of 60 to 70 MW.

As the dismal power situation compels most of the gardens to bank heavily on their generators, it jacks up the cost of production.

The TAI called upon the Chief Minister to provide relief on fixed charges, making it proportionate to actual supply of power in a month. It also asked for concession on composite tariff for the tea industry.

UNI