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September - October 2003
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a focus on quality control.” Mr. Bajoria mentioned that with a view to providing an incentive for Orthodox manufacture, ITA has strongly suggested to the Central Government for an assistance of
Rs 7/kg on export-linked production of the premium variety. We would urge the Government to consider the submission favourably and take an early decision,” he said.
He said the Tea Board study on ‘Primary Market of Tea’ was to examine the auction system and determine whether it was in consonance with the fostering of market competition and suggest changes towards lowering transaction and time costs which were rendering the auctions unattractive. To that, he added: “The ITA has consistently maintained that while the auction system has served the industry well in the past and will be taken recourse to by producers, it should not be mandated as a channel of sale by compulsion. Producers should be free to choose their channel of sale and derive the best possible value at the least cost through free exercise of that option.”
The high social welfare cost, cast by statutory provisions, have led to India becoming uncompetitive in the world tea market vis-a`-vis other producing nations who are not burdened with such provisions, said Mr. Bajoria.
“An Inter-Ministerial Committee, set up under the Tripartite Committee on Plantations, has recommended that the Government of India and the state governments should bear 50 per cent of the social infrastructure cost. This recommendation needs to be urgently acted upon and appropriate modalities should be worked out so that the tea industry is able to substantially reduce its cost burden The state governments should accordingly evolve schemes in consultation with the Ministry of Labour and Commerce and the industry.”
Mr. Bajoria invited workers, unions and state governments to address, on a priority basis, labour issues such as improvement of productivity and providing flexibility to the industry to rationalise manpower wherever required. “In the present scenario, every tea estate must have flexibility in deciding the total number of labour required and should not be bound to maintain a mandatory strength by virtue of any past agreement. Tea estates must be allowed to rationalise manpower by natural wastage and by reducing the labour strength in those cases where land-labour ratio is high.”
He also touched upon the issues of Salami imposed by the state government and requested its total withdrawal.

Mr. Bajoria also said despite the Union Government’s assurance that the new Additional Excise Duty would not leave producers worse off through a continuation of the benefits, exemptions and credits that were available
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September - October 2003
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