The Hindu Business Line : Assam vs Bengal row brews trouble in Indian Tea Association

THE ongoing tussle between Assam-based tea companies and their counterparts in West Bengal may lead to a split in the 124-year-old Indian Tea Association (ITA) and the creation of a new body comprising Bengal players.

Duncans Industries Ltd, the flagship of the G.P. Goenka Group, has already resigned from the association, citing several factors.

The growing differences between the two groups reached a flashpoint just before the association's last annual general meeting held middle of this month.

Mr G.P. Goenka confirmed to Business Line his organisation's decision to move out of ITA. According to him, ITA was dominated by representatives of the Assam industry.

"I do feel that the stand taken by the ITA members are purely focused towards Assam and the interests of the West Bengal industry have become secondary. In such a scenario, I feel there is no need to continue with the ITA membership," Mr Goenka said.

When asked whether his company would take up membership of the rival tea body, Tea Association of India, he said there was no immediate plan.

Mr Percy Siganporia, ITA Chairman, chose not to comment on the issue.

Sources said the managing director of a leading MNC tea company had taken the initial steps to set up a new tea body exclusively for West Bengal companies.

"We are not too sure what shape the new organisation will take and when it will materialise," sources said.

Another bone of contention among the warring groups is the renewal of memberships. Sources said total outstandings were well over Rs 3.5 crore.

ITA at present consists of around 200 members of the north Indian tea gardens, including leading tea companies such as Tata Tea, Hindustan Lever, Goodricke, McLeod Russel, Dhunseri and others.

Of these, approximately 30 per cent are from West Bengal with most being proprietorship firms, except Duncans and Goodricke.

Most other tea majors have a bigger exposure in Assam than West Bengal.

Before the last AGM, Mr K.S. David (Managing Director of Goodricke) was scheduled to take over as ITA chairman from Mr C.K. Dhanuka (Managing Director of Dhunseri Tea).

However, he had to make way for Mr Siganporia (Managing Director of Tata Tea), who was then additional vice-chairman of ITA.

As per ITA protocol, Mr Siganporia was supposed to take over the reins after the completion of Mr David's two-year term.

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