Stating this at the 106th annual general convention of the United Planters Association of India (UPASI), Principal Adviser (Agriculture), Planning Commission, DP Bagchi said that he would suggest the commerce ministry to hold a national level meeting to go into the taxation issues being raised by the plantations industry at every forum and work out appropriate measures on this front.

On the varying agricultural income tax imposed by various states, Bagchi said that UPASI should take upthe issue with the individual state governments and also with the new central government, once its in place. Bagchi said that in order to survive in the next millennium, industry has to emerge competitive and world class. He said that trade and commerce in thenext millennium will be governed by stipulations of the WTO and with India as the founder member of WTO, would have to abide by its commitment of a freer trade.

"Quantitative restrictions are to be phased out, non tariff barriers have already been removed fora number of commodities including plantation products in respect of trade with SAARC countries. In order to survive there is no wayout for the indsutry but to emerge competitive and face the changes", he added.

On the export front, Bagchi acknowledged that India was fairing extremely well till the collapse of the USSR economy, as majority of our exports were going into the Russian markets. He stressed upon the need to identify new markets for exports instead of solely depending on traditional markets. Stressing on the need for value additionand aggressive marketing, Bagchi said that India must learn from the experiences of Sri Lanks who have increased their exports tremendously, cornering India by a big margin of 22 per cent exports during 1997. Thiswas done by value addition and vigorous marketing.

Bagohi said that during the IGG meeting, which would be held by the end of this month, the importance of tea mark certification would be discussed. He informed that India and Sri Lanka were of the view that only 100 per cent pure tea (Camellia Sinensis) content should qualify for the tea mark.

"This is being opposed by the countries having sizeable number of packers. During the IGG meeting, we are planning to push for a minimum content of 90 per cent provided the details of the ingredients of balance 10 per cent are specified and do not dilute the health aspects of tea. The tea mark certification along with the protection of Intellectual property rights in georgraphical indications, will go a long way in helping India's tea industry"he said.

Bagchi also disclosed that the draft legislation relating to geographical indications is ready and is likely to be enacted soon.

On the problem of taxation in tea, Bagchi said that the issue has been taken up bythe commerce ministry with the ministry of finance. However, he said that it was not possible to solve the problems without an amendment to the Income Tax Act and income tax rules. But at the same times he said that efforts are on from the government's side and to find a way in which the tea exporters can also enjoy the same advantage as of section 80HHC as any other exporter.

Speaking on coffee, Bagchi asked the coffee growers to concentrate on the domestic market also.