The Federation of All India Tea Traders' Association (FAITTA) chairman Piyush Desai said that he had already got confirmation from several companies about the reduction in the prices which came into effect from the day the budget proposals were presented in the Parliament.

Out of 850 million kg tea annually produced in the country, 200 million kg is exported, and of the remaining 650 million kg about 300 million kg is sold in packets. The duty on packaged tea was applicable on packs of 101 gm to 20 kg.

Among the MNCs, HLL has a share of about 110 million kg, Tata 50 million kg, Duncons 20 million kg, Goodrik 10 million kg, Jayshree 7 million kg and other companies 13 million kg. Amongthe regional and small scale units, Wagh Bakri, Society and Girnar have a share of 12 million kg each and others totall 54 million kg.

Vyas, chairman of Wagh Bakri Company, said he had instructed all units to slash the price. The new packs with the reduced prices had already hit the market. The packs with old price tag were being replaced.

Incidentally, he recalled, this duty was re-introduced by Sinha in his first budget only last year, which was earlier withdrawn in 1992-93 by the then finance minister. The latest duty was withdrawn by Sinha following a spate of petitions and representations from several quarters.

This episode, as pointed out by Vyas, had exposed the chasm between FAITTA (comprising regional and smaller wholesalers and retailers) and TPAI (tea packeteers association dominated by MNCs) and ITA (tea producers association). TPAI and ITA had in the past kept FAITTA at bay while representing the cause of the tea industry with the government.

Vyas wished Sinha withdrew the two per centexcise duty still levied on bulk tea at producers level at the tea gardens.