It is stated by the president of United planters association of southern India (Upsi) that protection under tariff regime is must for small tea growers and domestic industry. He added that liberal imports of plantation crops at a time of nation surplus had led to a crisis. India, the largest producer and consumer of tea, annually produces around 800m kg and consumes 600m kg. It is opined that the govt. should increase the import duty on tea to 150 per cent from the current basic duty of 35 per cent. Tea growers in southern India finding hard due to drop in domestic prices and imports from Sri Lanka. Under Free Trade Agreement, tea imports from Sri Lanka attract a concessional duty of 7.5 per cent up to 15m kg, subject to certain conditions, as reported. The share of southern India in total tea production is nearly 200m kg, half of which must be exported to give reasonable prices to growers. Most of country’s 50,000 small tea growers are in southern states. Tea prices in the domestic auction had dropped to Rs. 48 a kg in mid-July from Rs. 58 at the same time in ’99. Tea prices averaged Rs.62 a kg at the auctions in ’99, down from Rs.73 in ’98, as reported. |
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