The Hindu Business Line : `Efforts on to check price swings in plantation sector'

THE India International Tea Convention 2003 may not have started with a big bang, but it was not a whimper either. In front of a packed auditorium, representatives of the Union Government and the industry presented a united forum to the global audience — of whom only a handful was present.

Mr L.V. Saptharishi, Additional Secretary in the Union Commerce Ministry, felt that the Indian tea industry was on the upswing after the setbacks it received during the last couple of years.

According to him, production was on the rise, prices would increase and exports were also showing robust growth. He categorically stated that the Union Government was ``solidly'' behind the industry and would always help it.

``We are formulating different rules and regulations to look after the interest of the plantation sector as a whole. It includes tea, coffee and rubber. These rules would not allow the prices to fluctuate and thereby help the producers from losing financially,'' Mr Saptharishi said.

He, however, urged the industry to pull up its socks and meet competition from players such as Kenya, Sri Lanka, Vietnam or Indonesia. He wanted the industry to safeguard the quality of Indian tea.

Later, talking to reporters, he clarified that the industry would have to focus not just on quality but also on quantity. ``If you are in the game you need to have both because quality and quantity go hand in hand'', he said.

Mr Naba Kumar Das, Chairman of the Tea Board, took the opportunity to make a few announcements. First, was the appointment of IBM as a consultant for holding auctions in six existing centres using the electronic mode by the end of 2003.

According to Mr Das, a high-level committee had been formed to study this aspect of the industry's functioning. The committee is expected to submit its report soon.

He also felt that Indian tea exporters should try to create an Indian image in the global market.

``Indian companies should also try to promote the Indian tea logo. There should also be a realignment in the product mix to gain more market share'', he said.

Meanwhile, the Tea Board has named its export promotion strategy as Operation Vijay. It is spread over five years from 2002 to 2007.

The export target, by the end of 2007, has been set at 270 million kg.

Mr Saptharishi also explained the rationale behind the abolition of the excise duty and the imposition of cess. ``Earlier when we reduced the excise duty by Rs 1 per kg, the effect was not realised down the line. This time we decided to abolish the excise duty but at the same time create a corpus which could be utilised for benefit of the industry,'' he said.

Regarding the debt restructuring and relief package announced by the Reserve Bank of India, he said that it is up to the individual garden owners to decide on it.

However, the Ministry would review the progress of this scheme by the end of March.

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