The tea industry in the South has sought immediate intervention of the Government to save it from the current crisis it is facing in view of low prices for the beverage. It has also asked for the immediate reconstitution of the Tea Board and appointment of a full-time Chairman for the Board.

“We faced a similar crisis in 2001, but the situation was not as alarming as it is now. There was a crisis in 1985 too,” said AK Mani, former Kerala MLA and member, Tea Board..

Today, plantations in Kerala are struggling to survive. The levy of ₹700 a hectare as plantation tax and land tax of ₹500, revision in lease rentals to ₹1,300 a hectare is posing a huge burden on the plantations,”.

Voicing concern over the steep decline in tea prices and mounting cost of production and inputs, the President of the United Planters’ Association of Southern India Vijayan Rajes said: “The sale price of tea has crashed from ₹145 a kg a year ago to ₹80 now, but the cost of production has risen to over ₹85 a kg. The sector is bleeding. Any further fall in the sale price would only result in closure of tea gardens, rendering millions jobless”.

The State should consider bringing down the value added tax for the estate sector from 5 per cent to one as is being levied on Bought Leaf Factories.

Huge amounts due to producers under various schemes are yet to be released. Unless necessary clearance is given for release of funds, it would be impossible to implement the schemes. And for this, the Government should consider constituting a Board and appointing a Chairman at the helm to address such issues.

The Upasi President has also appealed to the Government to consider concessional electricity tariff for the plantations by not linking it with other industries. “Notwithstanding such issues, buyers insist on various certification without offering any additional price.

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