The Hindu Business Line : Plea to set up SEZ for tea in Coimbatore

Suggestions
Involve the trade and industry for propagating the benefits of tea drinking.
To open outlets for sale of iced-teas, flavoured teas under joint venture.

Coimbatore , Aug. 22

The Tea Trade Association of Coimbatore (TTAC) has appealed to the Tea Board to consider setting up of a special economic zone for tea in Coimbatore.

Mr U.V. Saraf, Chairman of TTAC, suggested that it could be on similar lines as that proposed for West Bengal, for promoting larger quantities of tea exports from the city.

"Good infrastructure and active participation of exporters at the Coimbatore auction centre should act as a driving force for considering the SEZ status," he said.

Health drink

Emphasising the need for strengthening tea promotional campaigns, he said this would be an opportune time to promote tea as a `health drink', with the controversy over soft drinks . He appealed to the Tea Board to involve the trade and industry for propagating the benefits of drinking tea, to open outlets for sale of iced-teas, flavoured teas under joint venture.

Mr Saraf lamented that the Silver Jubilee Year project - `Tea Parlour' - aimed to popularise different varieties of `ready to drink teas' was still a non-starter for want of funds and appealed to the Board to extend support to such promotional activities.

Production

South India tea production witnessed a drastic fall by 9 million kg between January and June 2006 to 112 million kg. The fall was highest in Tamil Nadu at 7.5 mkg followed by Kerala at 1 mkg.

But the offering at the auction centre registered an increase of 9 per cent. In the first half of the current calendar year, the sales at the Coimbatore auction increased by 1 mkg to 10.7 mkg, compared with 9.8 mkg during the same period of the previous year. The average price levels went up by 6 per cent.

Exports

There was no adverse impact on exports due to production shortfall. Exports on the other hand increased by 15 per cent to 52.73 mkg from 45.53 mkg between January and June 2005. The exporters are confident of doubling the volumes to Pakistan this year from the previous year's level of 10 mkg.

Consumption

According to the Tea Board estimates, domestic consumption has increased to 757 mkg in 2005 from 735 mkg in 2004 and is expected to touch 780 mkg this year.

The association, while hailing the Government's sales tax reduction move has appealed for parity in the tax rate with the Government run auction centre. The teas sold through the auction centre was subject to TNGST at 4 per cent and CST at 2 per cent, while at the state-run auction centre, the rate was fixed at 1 per cent for both TNGST and CST sales, leading to unhealthy competition.

Office bearers

At the twenty-fourth annual general meeting of the association, Mr C. Sreedharan, Director, Tea Estates India Ltd, was elected Chairman and Mr. M. Chandrakant, Managing Director, Golcha Tea Plantations Pvt Ltd - Vice Chairman, for the year 2006-07.

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