The Hindu Business Line : Concor augmenting facilities in Amingaon ICD

Kolkata June 12 Container Corporation of India (Concor) is investing to augment facilities in the Amingaon (Guwahati) inland container depot (ICD) at a time when the prospects of tea exports, according to a section in tea industry, do not appear to be too encouraging. The Amingaon ICD mainly handles tea for exports.

Concor, it is learnt, is investing around Rs 3 crore to lay new railway tracks within the ICD so that full rakes could be handled at a time. Right now, there is no full-length line in the ICD. The tender has been floated and the work, to be implemented by North Frontier Railway, will be completed within a year or so.

The section of the tea industry not-too-hopeful about this year's export prospects would attribute its lack of optimism to several factors. First, the appreciation of the rupee rendering our exports unattractive to exporters. Second, bumper crop in Kenya which is to fetch lower prices for our tea in the world market. Finally, attractive domestic market.

The domestic price of tea in the current year, it is estimated, will rise more than that in last year. This will happen because while the domestic demand is rising at more than three per cent annually the production is not keeping pace. In fact, there has been a shortfall in production in the first quarter of the current year. Last year (2006-07), the Amingaon ICD handled nearly 2,600 TEUs of tea for exports through the Kolkata port against 2,300 TEUs in 2005-06. The target for the current fiscal has been set 3,000 TEUs. However, the actual throughput, Concor has been warned, might be less than last year's.

Concor sources point out that the ups and downs are common features of commodity trade and investments in augmentation of handling facilities are not made keeping in mind the business prospects in any particular year. One has to take along-term view.

Tea Board sources, however, discount the possibility of any significant drop in exports. For the past couple of years, it is pointed out, the exports (net of imports) have stagnated at around 180 million kg. It may not be very different this year also, add the sources.

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