Hike in price of natural gas has increased CoP of made tea: NETA

A CORRESPONDENT

GOLAGHAT: The North East Tea Association (NETA) has expressed sharp reaction over the price hike of natural gas.

In a statement, Kamal Jalan, chairman of North Eastern Tea Association (NETA), said that abnormal surge in natural gas price had become detrimental for the tea industry. This time the industry has been hit hard by the multifold increase of gas price. During the last 10 months, i.e., from July, 2021 to April, 2022 the price of natural gas has risen from Rs. 5,085 to Rs. 21,119.57 per 1000 scum. The per scum price of natural gas has gone up by four times during the last 10-month period.

This exorbitant hike in the price of natural gas has resulted in increase in the Cost of Production (CoP) of made tea by not less than Rs.6 to Rs.8 per kg. Gas is used as fuel in the withering and drying of tea leaves during processing. With such increase in costs, if the prices of tea at the farm gate level does not increase then survivality of the tea industry will be at stake, he said.

NETA appealed the government to take a serious note of this issue with immediate steps to curb the price of natural gas. Also, the organization appealed to the Union Government to bring natural gas under the ambit of GST for long-term sustainability of the tea industry.

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