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January - February 2003
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agencies involved such as the manufacturers, brokers, sellers, buyers, auction organisers and also the Tea Board.
The CCPA also welcomed the comprehensive set of directives which was subsequently been issued by the Tea Board to all auction organisers in the exercise of powers vested under Clause 13 of the Tea (Marketing) Control Order, 2003. The Chairman, Mr. Bharat Bajoria, opined that it is a matter of considerable satisfaction to note that the directives are in broad conformity with some of the key recommendations emanating from a Tea Board-commissioned study on the ‘Primary marketing of Tea in India’ with a specific brief to suggest measures to improve the auction system. The directives seek to reduce the transaction time and costs and also enhance the degree of competition and facilitate improved price discovery.
The CCPA has, from time-to-time, voiced the concerns of the sellers over the progressively mounting costs of selling through the auction system and some of the apparent rigidities in the prevailing auction rules which have severely impaired the attractiveness of the system and compelled sellers to explore and develop private sales channels. It observed that while the Tea (Marketing) Control Order, 2003 has, in the form of its enabling provisions, vested adequate powers with the licensing authority (Tea Board) to specify the direction of sale and purchase through the auction system. The authorities have, so far, refrained from making any specific stipulation in this regard. The CCPA is of the firm view that a sequenced approach to improve the attractiveness of the auction system should be first put in place and allowed to work before any such stipulation is contemplated.
The CCPA hopes that all sections of the trade will co-operate towards the smooth implementation of the Tea Board’s directives which seek to address the systemic deficiencies and aberrations which have crept into the present auction system.

DBITA Annual General Meeting

The 125th Annual General Meeting of the Dooars Branch ITA was held in Binnaguri on January 18, 2003 at the Central Dooars Club in Siliguri.
The ITA Secretary General Mr. D Chakrabarti, while addressing the AGM delegates, minced no words in reiterating that the tea industry in India has plunged into its fourth successive year of depression.

Responding to the crisis, he said, the industry charted out a roadmap last year for revival. The broad areas identified were: export promotion, adressing the adverse CTC:Orthodox mix and quality upgradation, cost reduction and promoting domestic consumption.
He mentioned that to provide the impetus to exports, the Tea Board, on a representation made by ITA, introduced the:

  • Capital Subsidy Scheme for Orthodox/Non-RC CTC enhancement
  • Transportation Subsidy on incremental exports
  • Transport Subsidy for exports from ICD Amingaon

Mr. Chakrabarti said the Tea Board had taken the initiative to launch the ‘Gold Standard Logo’ promotion programme in Russia in October. Closer home, the CCPA along with IMTEF and the Tea Board would organise the India International Tea Convention 2003 at Kolkata in March.
He said: “To improve our export performance, correction of CTC:Orthodox mix continues to be a major challenge. Regrettably, very little has happened in the previous year primarily due to higher associated cost of production of Orthodox teas. We are closely working with the Tea Board to evolve strategies to induce larger Orthodox production.”
Elaborating on rising cost of production, Mr. Chakrabarti said the social cost being incurred by the organised sector in providing statutory benefits and rations to labour amounts to approximately Rs 7 per kg as per ITA estimates. This, in addition to higher wage cost and overheads, leaves a wide and unbridgeable gap between the cost of production of the organised sector when compared to Bought Leaf Factories who account for almost 20 per cent of the production as well as the other tea production countries, where such statutory amenities are largely shouldered by the state.
“The ITA has been pursuing an agenda with the Tea Board and the Government of India to arrange for sharing of social cost overheads by the state. Efforts are also in progress to arrange allotment of foodgrain for our workers at BPL rates. We hope positive response would be forthcoming from the Government.”
The Secretary General stressed that labour productivity is another area of major concern. The unions have been receptive and their co-operation has been forthcoming in dealing with

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January - February 2003
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