The Hindu Business Line : Infighting marks Calcutta tea body poll

THE general body election of Calcutta Tea Traders Association (CTTA) used to be an innocuous annual affair where industry colleagues meet, exchanged pleasantries and, probably, discuss the nuances of the industry over a cup of tea.

This year's affair was, however, different. The apparent bonhomie remained but behind the veil there was bitter squabbling among trading groups, rivalry among companies over several issues and hectic campaigns by the candidates and their supporters.

And all this resulted in the ouster of the Hindustan Lever's senior executive, Mr Rakesh Kaushik, from the general committee of CTTA but, certainly, through the polling mechanism. Senior members of the organisation said Levers always had a member in the general committee.

"We never had a general committee without a Lever's executive. This has happened probably for the first time in the history of CTTA", a senior member told Business Line.

Some other members said CTTA, which runs the Kolkata Tea Auction Centre, is a 117-year-old body and it was their 113th annual general meeting.

"It might be possible that in any of these years Levers was not represented in the general body. That is not the issue. The issue is the way they have been voted out of the committee this year," the member explained.

When Business Line contacted Mr Kaushik, he said the matter should be referred to the corporate communications department of HLL.

However, he clarified that there was no reaction on his part. "I would also like to say that this not the first time that we are not in the general committee of CTTA. So that is not an issue at all," he said.

The general committee of CTTA is a 15-member body, of which five each are buyers, sellers and brokers. Hindustan Lever, being one of India's largest seller and buyer of teas at the auction centre, is more than eligible to have a member in the committee.

According to sources, the small buyers grouped among themselves, campaigned fiercely and voted out the Levers' executive because they felt that Levers had let them down on the issue of Tea Marketing Control Order, 2003. (TMCO).

It may be noted that TMCO, a Government order, was introduced by Tea Board in January 2003.

It was severely opposed by the small buyers. Regular walk-outs from auction centres were staged for over a month but, finally, everyone accepted it.

While all these incidents were taking place, Levers, as a buyer, supported TMCO. Their representatives remained at the auction centres and carried on with the bidding processes. "This annoyed the small buyers. So they grouped against Levers. This is a revengeful act," another member said.

There is another aspect of this infighting. Tea Board has introduced a number of steps, including TMCO, to streamline the auction mechanism. It is now contemplating introducing electronic auctions, this year.

"The small buyers are feeling insecure because, they think, their interests are looked after by the Tea Board. So, they desperately wanted their member in the CTTA general body," sources added.

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