efforts initiated by some gardens at the grass root level of productivity improvement, he added.
On the labour front, he said, manpower rationalisation is being closely scrutinised. “Undoubtedly, the industry must have the freedom in deciding its manpower requirements and must be freed from the shackles of the 1969 agreement on mandatory strength. We must, however, bear in mind the realities in terms of the special nature of our industry where we have a large population resident on the estate, while embarking on any restructuring model. This issue needs to be tackled with utmost caution because of its ramifications.”
The DBITA Chairman, Mr. P. Arora, while presenting the state of the industry in the Dooars, mentioned that the national production in year 2002 is expected to hover around 820 million kgs, with the Dooars contributing 138 mkgs. Auction prices, which till date is the only barometer to determine the price realisations, indicate that the Dooars tea averaged Rs 57.94/kg in 2002 at the STAC as against Rs 64.77/kg in 2001.
He pointed out that since 1998, the cumulative cost of production per kg had gone up by Rs 20 on an average and the average price has dropped by approximately Rs 30/kg, thereby threatening the viability of gardens. The high cost structure of the tea industry in general has outstripped the demand for our produce in the international markets.
He insisted that in view of the sluggish growth of domestic consumption, schemes for extending new plantation, whether in the organised or Small Grower sector, need to be suspended. “The industry must understand that much of the malaise faced by it today has been because of the unplanned growth of sector like Small Growers and the Bought Leaf Factories. In our pursuit for increased production, the fundamentals were overlooked, which makes us now bemoan the adverse impact of these sectors. The move of the district administrations in identifying, and thereafter initiating action appropriate action against these sectors, need unequivocal support,” he said.
Stating that the industry is heavily burdened by taxes and duties, Mr. Arora said: “Looking at the critical times, the Government needs to ponder whether relief in the form of a moratorium is called for. The economy of North Bengal calls for such an intervention since the industry has borne and co-operated While the industry circles have petitioned the government on all these aspects, an appropriate response is called for. I refer to the reported decision of the government of West Bengal to reduce the Salami rates applicable to certain categories of tea gardens.”
He added it is worth considering that BLFs, which had a peaceful co-habitation since long in South India, were never found to be an aberration to the established industry. However, in the North, the BLF and Small Growers, who are contributing as much as 20 per cent of the country’s total production, have unleashed forces that appear to lead to the withering of the established sector.

ABITA Annual General Meeting

The 113th Annual General meeting of Assam Branch ITA was held in Tejpur on February 22, 2003.
In his speech, the ITA secretary general Mr. D Chakrabarti elaborated to the delagates the current dismal scenario of the tea industry in the domestic as well as the international frontOn the rising cost of production, he stated that labour productivity continues to be an area of concern and the issue has been. In that regard, he spelled out the export agenda of the industry.

deliberated for sometime now at various forums of the industry. He said: “We in ITA feel that given the large divergence in productivity patterns from area-to-area, any attempt to increase productivity of workers across the board by an uniform increase in tasks and upward revision of plucking rates may not be equally beneficial to all sections of the industry.
“It may be prudent in the present circumstances, to consider introduction of appropriate disincentives for those not completing the assigned tasks on a consistent basis. The Association has noted with concern the contents of the Minimum Wage Notification issued by the Government of Assam recently, which provides for the existing tasks on plantations remaining unchanged. The matter has been represented to the Government of Assam by the CCPA and I would take this opportunity to reiterate the industry’s concern on this score as such intervention from the government would severely impede the efforts being made by the industry for its revival.”
Mr. Chakrabarti said the pattern of payment of bonus witnessed a significant shift from yesteryears in year 2002 with average disbursement in the Brahmaputra Valley ranging between 14-17 per cent. Although this calls for further rationalisation, the secretary general appreciated the efforts initiated by the Assam Branch in arriving at a peaceful settlement through negotiations.

TBITA Annual General Meeting

The 41st Annual General meeting of Terai Branch ITA was held in Bagdogra on February 18, 2003.
The Chairman, Mr. Bharat Bajoria could not attend the AGM due to exigency of work.
The Secretary General, Mr. D. Chakrabarti, described in detail the domestic and global tea market scenario. He also touched upon the issues of increasing cost of production, rising social overhead costs, labour productivity and the need for manpower rationalisation etc.
He mentioned in detail the Association’s initiatives towards boosting exports, implementation of which is expected to bring n cheers to the ailing sector.

SBVITA Annual general meeting

The 102nd Annual General Meeting of the Surma Valley ITA was held in Silchar on February 28, 2003. The meeting was attended by ITA Secretary General Mr. D. Chakrabarti and SBVITA Chairman Mr. S. M. Bhati among others.
Mr. Chakrabarti apprised the delegates about the financial crisis the industry is going through for the past several years. He pointed out that the downward trend in prices has continued in 2002 and has been threatening the very survival of many tea companies in the region. He called for concerted efforts to increase exports, look for new export destinations, increase labour productivity, and manpower rationalisation if the industry seeks to push up its bottomlines.

ITA Secretary General Mr. D. Chakraborty addressing delegates at the SVBITA Annual General Meeting.