COMMODITY SITUATION - A STOCK TAKING

摘要

In the tea sector there was some improvement in prices during 2004 which continued during the first quarter of 2005. However, prices started falling thereafter indicating the sector is yet to come out of crisis and more disturbing factor being that the future prospect does not augur anything to cheer for. Moreover, the relative improvement in prices during 2004 and in first quarter of 2005 as such had not helped the cause of tea growers in any significant manner as production cost was higher than theprice realized. The marginal improvement in prices noted was a direct off-shoot of low crop in the country and South India in particular where production was lower for the fourth year in succession. Though tea exports had marginally increased in 2004, if one takes into account 30.5 million tones imported into the country and more than 95 per cent of it being re-exported indicates that the net tea exports from the country was significantly lower. UPASI's effort in getting Additional Excise Duty [AED] ontea abolished was finally successful, which would bring in certain amount of relief to the beleaguered tea industry. The abolition of AED will mean a relief to an extent of nearly Rs 7 to 10 crores for the South Indian tea industry. UPASI had also beenconstantly pursuing the Ministry of Commerce to evolve an incentive package for orthodox tea from the AED fund. It is indeed heartening that the Ministry had announced the scheme effective from 1st January 2005 to 31st March 2007. The scheme intends to incentivise production of orthodox teas to the maximum extent of Rs 5 for leaf grades and Rs 4 for dust grades. The incentive will, however, be restricted to Rs. 3 for leaf grades and Rs.2 for dust grades in the event of no incremental production.