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.
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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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