Assam CM orders tea firms’ head offices back to state

Gogoi’s call followed a unanimous Assembly resolution on April 2 raising the same demand. The government and the state’s political parties believe the state is losing revenue because most big tea companies have head offices in Kolkata.

Gogoi emphasised that as a result most purchases too were made outside the state, thus depriving it of legitimate revenue and related economic activity.

A couple of years ago, a government estimate found that the industry spent Rs 300 crore every year on purchases outside the state. ‘‘Once purchases begin in Assam, these would fetch us some revenue besides helping unemployed youth get jobs,’’ Gogoi said.

The past few years’ stagnancy in both production and marketing of tea too was a big concern, he said. The state needs to produce quality tea to survive.

‘‘The tea industry’s interests are linked with the state’s interests. My government can’t ignore these aspects,’’ Gogoi said. He urged industry representatives to ‘‘seriously introspect’’ on the falling prices of green leaf and exports.

At the Guwahati Tea Auction Centre (GTAC), the average price of tea has slumped from Rs 75 a kg in 1998 to Rs 69 a kg in 2001. Even exports to countries such as Russia, Poland and the United Kingdom too have slided from 111 million kg in 2000 to 88 million kg in 2001.

Gogoi took strong exception to various tea gardens’ encroachment on over 56,000 bighas. The industry, he said, must pay premium on such land without delay. The encroached land included both government khas land as well as reserved forest areas, he said.