Industry fears losses and overproduction
STAFF REPORTER
GUWAHATI: The Tea Board of India has issued a circular stating that no permission is required from the board to plant tea anywhere in the country.
The Tea Board's circular, a follow-up of the recent move by the Union Commerce and Industry Ministry to amend the six-decade-old Central Act that used to restrict tea cultivation without clearances, has triggered fear and apprehension in the Assam's tea industry as it might result in excess supply and reduce profitability in the sector. The circular was issued on Wednesday (September 8, 2021).
On August 23, 2021, the Union Commerce and Industry Ministry had issued a notification suspending seven sections of the Tea Act, 1953, "in the public interest". Sections 12 to 16 were about restrictions on tea cultivation and rules such as permission from the tea board, to plant tea in normal or special circumstances, or run a tea nursery. Section 39 was on penalty of up to Rs 5,000 in case of violation of the earlier sections. Section 40 said in case of violation, tea bushes planted in an area without permission can be removed from the plot.
"The sections (which had been suspended) used to safeguard the interests of the industry. More tea plantations will lead to an abrupt rise in the production of tea leaves and an oversupply that can bring down tea prices. The small tea growers will be most benefitted. But the organized tea planters may have adverse impacts," a tea planter said. He said the decision is a fresh challenge for the beleaguered tea industry.
Chairman of the Tea Board of India Prabhat Kamal Bezboruah when contacted told The Sentinel that one has to wait and watch about possible impacts of the Central Government's new move. He, however, tea is being planted in 2 lakh hectors of land in Assam without taking any permission from the Tea Board. "The government wants to liberalize the tea plantation sector. Corporate forces might sneak into the sector. Let us hope for the best," Bezboruah said.
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