NEW DELHI, May 19: A national tea traders' body has asked government to ensure adequate supply of black tea to consumers at right prices, saying its failure to read the situation caused by drought in growing areas could lead to an "onion-like crisis" witnessed last year. In a letter to minister of state for civil supplies Satyapal Singh Yadav, the Federation of All India Tea Traders Association complained that though traders were forced to pay a 25-30 per cent higher prices for tea, they were not getting required supplies."This year tea prices are higher by Rs 20-30 per kg compared to corresponding period last year due to some shortage magnified unnecessarily by one section of the tea industry," the federation's chairman PO Desai complained in his letter.
In view of the rise in tea prices, the benefits that packet tea consumers enjoyed after abolition of the eight per cent excise duty on packaged tea had been diluted, Desai said. As per Tea Board statistics, till March 31 India's tea production haddeclined by 25 per cent. Tea production during January-March slid to 61.31 million kg against 81.47 million kg during the same period last year.
The industry, however, claims that upto April-end the crop had declined by 40 million kg compared to production during the same time last year. However, Tea Board has denied that prices have gone up since the year beginning on low production. The board said average tea auction prices in the country had declined to Rs 64 a kg since January this year against Rs 88 a kg during same period last year.
South Indian planters have complained that prices in the region had declined sharply than in the north-east region. Prices in south had slid to Rs 55 a kg from Rs 80 during same period last year. Prices in the north-east, in comparison, were ruling around last year's level, though they have tended to decline during the last fortnight.
Desai complained that he had asked the Tea Board to make suitable arrangements for adequate supply of tea in the domestic market duringa recent meeting of the board held at Coonoor in Tamil Nadu. Recalling the onion supply shortage faced by the country during September-October last year, Desai said "same type of situation would occur in tea. Everyone fears of a similar situation."
Tea Board officials say there was nothing to worry about the 40 million kg fall till April. As far as tea production in 1998 was concerned, it was an exceptional one as intermittent rains during January-March 1998 in the north-east had helped planters harvest during the lean season.
Tea Board statistics show that January-March tea production was 59 million kg in 1996, 54 million in 1997 and 81 million kg last year.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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