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Coimbatore , Oct. 26

THE plantation sector, while welcoming the Centre's timely intervention with a package of concessions to bail out the ailing sector from total collapse, is grieved by the `unconcerned' attitude of the State Governments.

The industry feels that the State could extend some immediate benefit by way of lowering the sales tax to 4 per cent and CST to 2 per cent, besides reducing the electricity charges.

The power cost alone, it is learnt, works out to Rs 4 per kg of tea in the cost chart, as the tea factories are categorised as high tension (HT) consumers. `After all, a tea factory only processes the agricultural produce (the green leaf) to make the black tea, which is a common man's drink', the source argued. ommenting on the Centre's relief package, Mr C. Sankaranarayanan, Adviser, Planters' Association of Tamil Nadu (PAT), said the avenues of cost reduction was still an area of major relief that the sector sought, be it reduced interest rate on crop loans or the promised reduction in the prime lending rate to 5 to 6 per cent.

`While the moratorium on interest payments will help ease the difficult cash flow situation and reduce transaction cost, the drastic cut in import duty on imported machinery would give a boost to efforts aimed at quality upgradation,' he said. The industry was looking forward to the Government for extending a subsidy for exports and reimbursement of social sector costs. `In fact, such relief would help reduce the cost of production and make Indian tea and coffee price competitive, resulting in increased exports,' he added.

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