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Recovery hope for tea in 5 yrs

Abita chairman stresses quality production and promotion
Guwahati, Feb 16 : The Assam tea industry will be able to recover its losses only after five years going by the present market condition, notwithstanding the encouraging price fetched this year.
The industry’s prevailing state of health was revealed by the chairman of the Assam Branch of Indian Tea Association, S. Hazarika, at the 119th annual general meeting of Abita at Thakurbari Club, Tezpur, today.
The average price at the Guwahati Tea Auction Centre in 2008 was Rs 91.50 as against the average price of Rs 69.77 in 2007.
“While we acknowledge that our prices this year have been better than the previous years of recession, we need at least five years to recover from the losses suffered by us. We will have to continue with our emphasis on quality production. We will have to continue our efforts to achieve higher levels of both land and labour productivity at our level,” Hazarika told the gathering.
The meeting was attended by several members of the tea planting community.
Speaking on several issues like export, security and tax exemption affecting the industry, Hazarika said the present price trend would help the industry pay off its debts, clear past liabilities and start its modernisation plans which were put on hold all these years despite the global recession.
“The workers have also suffered immensely during this period but have held our hands throughout,” he added.
The good news is that despite the credit squeeze and recession, the consumption of tea — a drink for all seasons — is steadily growing. “A domestic consumption level of 825 million kg is projected during the year with an average per capita consumption of about 730gm per head,” Hazarika said. He, however, pointed out that the consumption of tea in the country was low compared to our tea-consuming neighbours like Pakistan.
“The generic promotion campaign needs to be sustained through media campaign for sustained growth of domestic consumption, targeted prominently at the youth who are today’s icon and tomorrow’s future,” he said.
Hazarika quoted the export figures as 175.5 million kg till November 2008 as against 160.4 million kg in 2007.
“Exports are expected to touch 200 million kg by the end of the year. On the export front, Assam tea has done relatively well, exporting about 85 million kg as against 80 million kg last year. It is expected that with larger volumes of Orthodox tea being produced, demand for Assam Orthodox, particularly in countries like Iran, will improve further,” he said.
The industry expressed its disappointment over the state government’s delay in considering its request for exemption of green leaf cess for tea exported through Inland Container Depot (ICD), Amingaon.
“This, other than boosting export of Assam tea, will generate business activities associated with the operation of the ICD at Amingaon. It will bring Guwahati into focus as a buying and exporting destination,” Hazarika said.
He also spoke about the industry’s concern about law and order with extortion demands and killing of executives. The recent killing of Gautam Katoky, a senior executive, sent shockwaves through the industry.
“This will affect the morale and confidence of the planting community, particularly at a time when the industry is just showing signs of regenerating itself. We urge the state government to take initiatives, political and administrative, with the militant groups under ceasefire and those not under ceasefire to sort out the problems to enable the industry to operate without fear or favour,” he added.