This is with reference to “Review tea auction system, says Parliamentary panel” (Business Line, August 15). To quote the news report, “The age profile of our tea bushes is another area of concern. An estimated 37 per cent of tea bushes are more than 50 years old, whereas in Kenya younger plantations account for more than 70 per cent of the total tea area and in Sri Lanka it is 68 per cent. In Vietnam, the entire tea area is not more than 20 year old, whereas, nearly one-third of China’s tea bushes are less than 10 years old”. The present sad situation of the Sri Lankan Tea plantations is due to the old age of the tea bushes giving rise to low yields, and rising cost of production, etc. I hope you will agree that it is not possible to either tempt or force an old and exhausted donkey to improve productivity.
Hemal de Silva
Issues of governance
This refers to the article “When governance is ‘outsourced’” (Business Line, August 13). With the Index of Industrial Production (IIP) falling by 1.8 per cent in June, it is clear that India Inc is in dire need of more consumption demand.
The domestic economy must be revived to compensate for the global economic meltdown. .
P.S. Saravana Durai
This refers to “Rupee depreciation does not help us” (Business Line, August 15). Though dollar earnings of exporters rise when the rupee depreciates, importers have to pay more for capital goods and machinery.
The RBI’s directive to exporters to convert half their foreign-exchange earnings into rupees to make dollars available in the market had disappointed exporters. Instead, unnecessary imports should be curbed and more foreign direct investment attracted to increase the supply of dollars. A Tobin tax may also help bring dollar revenue and control the flow of foreign institutional investment.