The Hindu Business Line : Tea industry looks for immediate solutions

TEA planters and traders are looking forward to at least two important announcements from the Centre when the policy makers meet them in Coonoor on Monday and Tuesday.

Both Mr Kamal Nath (Commerce Minister) and Mr EVKS Elangovan (Minister of State for Commerce) will reply to the industry's representations. The Additional Secretary of Commerce, Mr Abhijith Sengupta, and the Tea Board Chairman, Mr N.K. Das, will outline the approach of the Government and the Board.

The Nilgiris MP, Mr R. Prabhu, will elaborate the steps taken by him to get higher returns to the growers. The Tea Board Executive Director, Mr R.D. Nazeem, who burnt teas failing the PFA standards, will be present.

The players in the industry expect this forum to announce two important decisions - a floor price for the green leaf and the suspension of the e-auctions until they are presented trouble-free.

As for the floor price, representations from both the industrial and political sides have been made highlighting not only the economic need, but even the political requirements arising from Tamil Nadu going in for Assembly elections in eight-months time.

Pressure has been mounted on the Centre to declare a workable floor price to save the over 60,000 small growers in the Nilgiris who have been demanding various levels of floor prices from Rs 10 to 15 a kilo for the green leaf they supply to the factories.

Now, the ministry is understood to be studying the cost of production for the green leaf engaging the services of the Institute of Cost and Works Accountants of India (ICWAI) to explore the possibility of fixing up a reasonable floor price. There are also other factors including the monitoring of the implementation of the price.

Regarding e-auctions, the dissatisfaction of the trade is now more visibly telling. In the Coonoor auctions, the disruptions continued even last week. Some brokers claimed that the prices shot up Rs 5.50 a kilo on some catalogues when they resorted to manual sale, thereby stressing that prices are more remunerative to the producers in the manual sale than the e-auctions.

Mr R.L. Maheshwari, Vice-Chairman of TTAC, said that in the event of the failure of the e-auctions, the method to be followed should be left to the discretion of the Association as the body is highly responsible.

The annual report of the UPASI records: "In the light of the frequent breakdowns at the e-auctions and the problems faced by the producers on account of withdrawal of lots thereby affecting the cash-flow position, UPASI had requested the Tea Board to put in place a fool proof system so that there are no disruptions and break downs at the auctions".

The UPASI had earlier welcomed the Tea Board's initiative in electronising the auctions, but has now asked for amendments to ensure anonymity of bidding.

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