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Save tea from cheaper imports, Basu tells Centre

PRESS TRUST OF INDIA

Calcutta: West Bengal Chief Minister Jyoti Basu has urged the prime minister to exclude tea from the list of zero-duty importable items from Saarc countries to save the industry from a major crisis.

In a letter to the prime minister, Basu said that the Centre's decision to allow free imports of tea from saarc countries to India had come as a shock to ``our tea industry''. Besides, a move is reportedly afoot to allow such imports on nil custom duty terms. ``Should this really happen, India's tea industry will be plunged into a serious crisis,'' he said. Production of tea in the country is estimated to be around865 million kilograms in 1998, with exports being at the level of 205 million kilograms. There is already a state of oversupply of tea in the country. Import of tea without any such custom duty, will be of serious detriment to tea industry.

Among all traditional industries, tea played a key role in the economy by generating employment directly to over a million workers and earning foreignexchange.

``I strongly feel that the country cannot afford to have these advantages eroded by granting concessions to other saarc countries''.

Alternatively, the customs duty on imported tea may be raised to ensure competitiveness in the tea industry in terms of price, Basu added.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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