The Hindu Business Line : Upasi to urge Govt to allow freedom in tea marketing

THE United Planters' Association of Southern India's (Upasi) delegation will call on the Union Commerce Minister, Mr Kamal Nath, in New Delhi on Tuesday to seek the continuation of freedom in marketing in the tea industry.

"We are concerned about forcing producers to sell their production only through auctions. We are asking for freedom to sell our teas either through auctions or privately, depending on market conditions. We are requesting the Government not to interfere with this right," Mr B.B. Medaiah, Upasi President, told Business Line.

Although some quarters in the North pressed for auctions, he said the tea industry in the South opposed such compulsions.

"The Government does not guarantee us a minimum support price when it wants us to sell our teas through the auctions. We get only around Rs 40 a kg on an average at auctions even as our production cost is Rs 60. How can the Government compel us to sell our teas for a Rs 20 loss?" he asked.

Observing that the alternate channel would deter buyers from artificially depressing the prices, the UpasiPresident said, ". Why should the Government prevent producers from directly selling their teas in the open retail market and benefit from higher prices? A marketing system should thrive on its own intrinsic merits and not on Government compulsions."