The Hindu Business Line : Coonoor tea buyers seek status quo in auctions

A statement issued jointly by the Coonoor Tea Buyers' Association, the Tea Buyers Association of Coimbatore and the South India Tea Exporters' Association, said that since the auctions were not held in Coonoor this week, some exporters who had commitments during February were not able to procure teas and, hence, could not effect the shipments in time.

The statement said that at a time when the prices were looking up, the major blenders and upcountry buyers were unable to procure the teas for their blends. More so, when the offer from the North was low. "The biggest loss is to the small growers who are deprived of the higher realisation for their produce," it said.

Appeal turned down

It said that the buyer members of the Coonoor Tea Trade Association (CTTA) had requested the CTTA to conduct the auctions as per the existing provisions of the VAT and CST.

This meant that the CST sales would attract 2 per cent concessional rate as per the Tamil Nadu Government notification No: 71 of July 22, 2006.

The exporters are exempt from the payment of sales tax. This exemption continues even after the implementation of VAT.

The VAT has replaced only the TNGST Act. The CST Act remains unchanged.

"The Government has not withdrawn its notifications for exemptions or concessions for exports and inter-State sales," it pointed out.

"But, the CTTA Chairman did not accept the appeals of the buying community and had forcefully decided to conduct the auctions, henceforth, only under the payment of VAT, thereby denying the fundamental rights of the export and CST buyers' availing the benefits under these Acts," the statement said. The VAT attracts 4 per cent tax on tea.