The Hindu Business Line : Bengal Govt panel favours 100% auctioning of tea

The committee also touched upon the most critical input of tea industry, the labour force. Dr Sen suggested that there is a need to review the 1969 agreement on labour productivity.

Kolkata , March 4

THE one-man committee formed by the West Bengal Government to study the problems of tea industry has suggested total auctioning of tea and rationalisation of salami payments by the garden owners. (Salami is a fee paid to the Government by the estate owners.)

The report, prepared by Dr Sabyasachi Sen, West Bengal Secretary for the commerce and industry department, also suggested that productivity levels in the gardens should increase.

The Indian Tea Association (ITA) has welcomed most of the suggestions made by the committee. In a press release, Mr C.K. Dhanuka, president of ITA, said the recommendations indicated that the State Government was keen on resolving the problems of the industry.

"In particular, the ITA welcomes the recommendations relating to spreading the incidence of salami, in case of lease renewals of tea gardens on transfer, in instalments spreading over 30 years with a moratorium on payment for the first two years as well as the continuance of the present concessional salami rate for a further two years beyond March 31, 2004," the release stated.

The committee also touched upon the most critical input of tea industry, the labour force. Dr Sen suggested that there is a need to review the 1969 agreement on labour productivity.

"This is completely in consonance with ITA's own initiatives to bring these matters on the discussion table with the operating trade unions in West Bengal. ITA feels that it would be necessary to achieve a 15-25 per cent reduction in the cost of production relating to labour to maintain viability," the press release stated.

ITA, however, strongly opposed Dr Sen's suggestion of 100 per cent auctioning of tea through the recognised tea auction centres. ITA is opposed to any such mandatory stipulation.

"This sort of a stipulation would choke off private marketing initiatives which have been pursued by individual companies to establish their own channels of sale and through which they continue to derive significant value for their produce," the press release stated.