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Kolkata, July 7 The members of Calcutta Tea Traders Association (CTTA) are facing shortage in warehousing space, according to its Chairman, Mr Azam Monem.

Addressing the 115th annual general meeting of the association here on Monday, Mr Monem said the available registered warehousing space for storage of auction teas was 13.5 lakh sq ft but the requirement was for an additional six lakh sq ft.

Historically, most of the registered space was situated on land owned by Kolkata Port Trust and three warehouses in the port area had been sealed since September 2006 following legal action by KoPT against tenants and warehouses for not updating to revised lease rentals.

With the port’s request for further upward revision of the rentals currently before the Tariff Authority for Major Ports, it would no longer be possible to carry out tea warehousing within the port area unless the CTTA’s schedule of charges was also revised, which again would push up the transaction cost.

The CTTA General Committee in the last two years took a number of steps to augment the warehousing capacity and make available storage space of a higher standard and free from all encumbrances. “However, our efforts have been stymied by a few warehouse-keepers who wish to retain monopoly over tea warehousing in Kolkata and this is most unfortunate,” Mr Monem said.

The CTTA Chairman, therefore, asked the members to prepare themselves for a complete relocation of auction warehouses which may be in a Tea Park, complete with blending and packeting units, on the National Highway. He sought the help of the Tea Board Chairman for preventing any more penal action by the port and for acquiring warehousing space.

The Tea Board Chairman, Mr Basudeb Banerjee, said that his organisation had taken up the matter with the Kolkata Port Trust but with little success. “It appears we have to move way from the port area,” he said, pointing out that the proposal for a Tea Park in Siliguri was making progress and there was a proposal to have one more park in Howrah district. The projects would be implemented through public-private partnership, he added.

Kolkata Port Trust, a spokesman said, had no other option but to take legal action to evict illegal occupants and unauthorised encroachments in the Libyan Tea Warehouse in the Kolkata dock System as the port was not receiving any payment.

The warehouse was given on lease to Tea Trading Corporation of India (TTCI), an organisation under the Commerce Ministry, with Tea Board as the guarantor. However, TTCI had sublet it to some parties who in turn did further sub-letting without the port receiving anything.

TTCI subsequently went into liquidation and port had to exercise legal option to get back the possession of the warehouse. “We’ve no problem with any lessee paying the approved rent and abiding by the stipulated conditions,” the spokesman added.

More Stories on : Supply Chain Management | Tea | West Bengal

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