Calcutta, Aug 22: Union commerce minister Ramakrishna Hegde on Saturday assured the tea industry that the government will either scrap the 8 per cent excise on packaged-branded tea that was levied in the budget or increase the import duty on tea from south Asian countries.The minister, addressing the Tea Board's awards ceremony here, said the tea industry would have to focus on increasing productivity, quality and marketability. He said it should not be difficult to hit the production target of 1,000 million kg set for the year 2000.
Hegde also proposed the reactivation of the Central Advisory Council on tea, a common industry-government platform that was stillborn after being set up in end 1996. The council met only once since it was set up."This would be a common platform between tea industry and government officials which could interact before policy formulations are undertaken", he said. The body will now meet at least three times a year in New Delhi.Elaborating on the informal talks he had held withindustry officials before the ceremony, Hegde said he saw merit in the suggestion that quality standards be set for the 2000 items to be listed as freely importable. He said he agreed with the industry's view that a 10 per cent customs duty on such imports would not be enough to protect the tea industry's interests. However, the commerce ministry is yet to decide on the new duty. He emphasised that there is need to ensure that tea imports are in "prime condition".
The government would consider incorporating ISO 3720 standards for such imports, and prevent tea waste from entering the country, he said.Hegde said he had been the first to ask the finance minister to consider the withdrawal of the new levy on packaged teas. Although the excise rate was later modified, Hegde said, the commerce ministry is seeking the complete withdrawal of the duty. He, however, asked the industry to improve packaging designs and quality for better branding.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.