Agri Business

Plagued by rising costs, tea plantations are hoping for sops in the Union Budget

Our Bureau Coimbatore | Updated on January 26, 2018

The plantation sector is looking for some respite in the upcoming budget. The tea industry is hoping that the Finance Minister would help the sector strike a balance considering the rising (forced) of inputs and stagnant tea prices.

Parimal Shah, Vice-President, MK Jokai Agri Plantations Pvt Ltd, pointed out that the fixed costs for the tea plantations had soared by about 45 per cent over the past three years — largely on account of the rising labour charges which accounts for 50 per cent of the total cost. The price realisation has, however, increased by 17 per cent or less.

“Inability of the tea plantations to book profit due to steep increase in cost of production, absence of adequate benefits from the government, absence of adequate benefits to the tea exporters have all made the sector sick.The recent advantage realised through a minor increase in the MEIS scrip has been more than offset by the appreciating rupee against the dollar,” Shah said.

Published on January 26, 2018

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