Tea industry analysts told The Financial Express that with profitability being on the wane for most companies over the last one year, the repurcussions of militant activities would lead to a further drain on resources. "Besides there is a constant fear lurking in the gardens", said a Cachhar planter on conditions of anonymity.

The recent incidences of abduction and killings have centred around this region oflate where deployment of security forces have been very low. The tea industry has apparently urged the Assam government to step up its security measures in the gardens.

According to the planter, the proposition to deploy the Assam Tea Plantation Security Force (ATPSF) to counter insurgencies in the gardens is difficult owing to the mounting costs involved.

"Moreover, for most of the gardens, the margins between the sale price realisations and cost of manufacture have been very thin which restricts them from spending on recruiting special forces on plantations", the planter said.

"All that the industry could do is to ask for more security personnel for monitoring the area", he added. Industry sources contended that the lower Barak valley or the Cachhar area as it is commonly known was not particularly deemed as a disturbed area. There are around 103 gardens in the area producing about six per cent of the entire Indian tea crop.

Since security happens to be a state subject, a direct communication with the union home ministry is not feasible, said an industry official.

Currently almost 108 gardens in upper Assam are covered by the ATPSF. The bulk of Indian tea is produced from this region.

As far as deployment of central security forces are concerned, a top government source said that that increased insurgency in Assam has led to a serious resource crunch in the state coffers with the union government's reimbursement of security related expenditure falling far short of the actual expense borne by the state.

This, sources said, had put a lot of pressure on the state government on beefing up security measures and increased vigil at various corners throughout the state.

It may be noted that the aspect of the reimbursement of the security related expenditure was formalised in 1998 by the union cabinet. Prior to this, the money was reimbursed on an adhoc basis with no laid down criteria. The number of criteria to qualify for the security-related expenditure includes the presence of armed outfits, banned organisations, and states where the army has been called in to handle the law and order situation.

Industry officials confided that the situation in Assam was volatile moreso with thinning out of security forces in recent times. The deployment of ATPSF was again a long-drawn process and short-term security measures are absolutely necessary, said a company source.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.