Presenting a gloomy picture of the auction of south Indian teas, where a severe bearish tendency prevailed throughout the year, Mr Kapoor stated "The plight of small growers is more severe. There are nearly 62,000 small growers in that part of India. Small tea growers, who were getting Rs 10 for a kg of green leaf, got a low price of Rs 4.50 to Rs 4.75 a kg."

Mr Kapoor mentioned in his submission that this had made the growers resort to agitation for remunerative prices. Although, the state government reduced the local sales tax on teas during the year, and despite the Union commerce minister, Mr Murasoli Maran,initiating a subsidy scheme, yet these failed to prevent growers from resorting to distress sales, Mr Kapoor said. The growers received Rs 2 a kg as subsidy.

Mr Kapoor pointed out that if the scheme is extended right up to March 2001 in its present form, the total outlay would be to the tune of Rs 525 million." According to a Tea Board official, the Board has already spent Rs 170 million on the subsidy scheme.

The annual production of small tea growers was estimated at 75 million kg on an area of 40,000 hectares. Mr Kapoor expressed his apprehensions, that if the present situation in south India's tea economy continues, many gardens may discontinue their production. "Most of the tea estates had to borrow funds to pay their workers and there are backlog of wages to be cleared. This has strained the management-labour relation. If there is no improvement in the price- situation, a large number of estates may face closure," he said.

The chief regional executive informed the Board members, that in Tamil Nadu, a concerted action has been taken by the state government, Tea Board and the auction authorities. "Vigilance on tea adulteration has been stepped up through the help of the state government. A vigil at the auction level is being kept and brokers have been told not to catalogue poor quality teas."