The Hindu Business Line : ‘Sharing social cost of tea sector under study’

Guwahati, Nov. 24 The Commerce Ministry is considering the recommendation of the special committee constituted under it to examine the sharing of the social cost of the tea industry. Giving this information here on Saturday, Mr Kamal Nath, Union Commerce Minister, said: “We’ve initiated discussion in this regard with the Labour Ministry and respective State Governments and the extent of sharing will depend on how much the State Governments will agree to share”.

Mr Kamal Nath was addressing newspersons after the valedictory session of the India International Tea Convention 2007.

Earlier, Mr Tarun Gogoi, Chief Minister of Assam, made two announcements to benefit the tea gardens. First, the reduction in stamp duty on the transfer of properties, also including the tea gardens, from the present 16 per cent to 6 per cent. “For women, the reduced rate will be 5 per cent,” Mr Gogoi said.

Also, the relief on the agriculture income tax in respect of tea exported through Amingaon inland container depot has been increased. “Earlier, the relief was 50 paise per kg, now it will Re 1 per kg,” the Chief Minister said.

Cess rates

The Assam Government, the Chief Minister said, was also keen to withdraw cess on green leaf for exports. “However, no decision in this regard could be taken as the matter is sub-judice and pending with the Supreme Court,” he said. The cess rate is 32 paise per kg.

The other issues, which Mr Kamal Nath felt were crucial for the tea sector, included, among others, rejuvenation and replantation of the old tea gardens and reopening of closed tea gardens.

India-Pak & tea

Tea, he said, occupied the most important item on any agenda of discussion between India and Pakistan. The issue of exporting Indian tea through the Wagah border was also high on the agenda. “However, the political situation in Pakistan right now is not conducive to push through any discussion in this regard,” he observed.

Mr P. Bordoloi, Assam Minister for Industry, said the declining quality of Assam tea produced particularly by small-growers being matter of concern, the State Government was contemplating quality stipulation.