Tariff cover for tea industry may go

He was delivering the keynote address at the two-day international tea convention being jointly organised by the Tea Board and the United Planters Association of South India (UPASI), here today.

He felt that in the next few years the Indian tea industry should concentrate on improving the quality and hygienic standards. It should seriously think on the organic tea sector as there is a growing demand for this variety in the US and Europe.

The growing local demand for tea has led to complacency intapping the overseas market. Only by increasing production the demand from both sectors can be met. In the case of South Indian tea, the production has gone up by 25 million tonnes in the last few years but productivity has stagnated.

He also said the price index of tea has been the highest than any other commodity in the last 18 years. While tea has an index of 520, the index for the entire food industry is 455.

Inaugurating the convention, State Finance Minister T Sivadasa Menon said that upto 1992, India was the largest exporter of tea. But it slipped to the fourth position because of heavy competition. He suggested the formation of an all-India body of exporters to promote export interests.

Welcoming the gathering, Tea Board chairman S S Ahuja said the current emphasis of Indian tea industry is on research and development on technology as well as management systems. Indian tea industry is working towards attaining HACCP standards.