News Analysis India

Tag: Assam tea

  • Assam rolls out incentive scheme to boost orthodox, speciality tea production

    By PTI
    GUWAHATI: The Assam government on Sunday rolled out an incentive scheme to boost production of orthodox and speciality tea, which have high demand in overseas markets and can help planters fetch better prices.

    Launching the Assam Tea Industries Special Incentive Scheme (ATISIS), 2020, Chief Minister Himanta Biswa Sarma highlighted his government’s plans for land reforms of tea estates and enhancing social security network of workers by gradually taking over the existing health and educational institutions of gardens.

    “The primary idea behind this scheme is to establish a balance between the production of CTC tea and orthodox variety. Orthodox tea has good demand in overseas markets. If we can increase the production, we can expand our market share,” he said.

    Orthodox and speciality tea currently account for about 11 per cent of the state’s annual production, and the rest is of CTC variety.

    The cost of manufacturing orthodox tea per kilogram is 20-25 per cent higher than that of CTC variety, and the ATISIS is expected to help bridge this gap, he said.

    “The cost of production of orthodox tea is higher and hence, help is needed. For this purpose, we have implemented this scheme,” Sarma said.

    Under the ATISIS, the state government will provide interest subvention of three per cent per annum on working capital loan and subsidy of Rs 7 per kg for production of orthodox and speciality varieties.

    Moreover, a 25 per cent subsidy for the purchase of new machinery for the production of orthodox and speciality tea would be given.

    The agricultural income tax holiday for three years has also been included in the scheme, which was approved by the previous BJP-led state government in October last year.

    The scheme will be applicable for three years, starting from April 1, 2020.

    The chief minister said the incentive programme will entail an expenditure of Rs 300 crore per annum, and urged the tea companies to start filing for reimbursement immediately so that the first payments can be made by August.

    He also announced that Rs 50 crore would be spent for campaign and publicity for Assam tea in overseas markets and mooted an idea of appointing an international brand ambassador.

    The chief minister also said the state government plans to take reform measures for the maximum use of land in tea gardens and will amend existing laws to widen the scope of using such a resource.

    To enhance the social security network of the tea garden population, he said plans are afoot to gradually take over the existing health and educational institutions of estates.

    Industries and Commerce Minister Chandra Mohan Patowary, Finance Minister Ajanta Neog, Tea Board Chairman Prabhat Bezbaruah and Indian Tea Association Chairman Vivek Goenka were also present on the occasion.

  • Assam government decides to raise tea garden workers wage by Rs 38

    By PTI
    GUWAHATI: The Assam government on Friday decided to hike wages of tea garden workers by Rs 38 and this will be effective from February 23 of this calendar year.

    Chief Minister Himanta Biswa Sarma, held a meeting with representatives of Assam Chah Mazdoor Sangha and other tea bodies to discuss issues pertaining of wage fixation and it was decided to hike the daily wage of tea workers by Rs 38.

    “With this hike, the tea workers in Brahmaputra valley would get Rs 205 from the existing Rs 167 and tea workers of Barak valley would get Rs 183 from the existing Rs 145,” Sarma said.

    The previous BJP-led alliance government of former chief minister Sarbananda Sonowal in its last cabinet meeting in February this year had hiked the daily wage to Rs 217, but the garden owners approached the Gauhati High Court and the decision could not be implemented.

    “Since February 23 decision by the government to raise the daily wages of the tea garden workers and the subsequent court order, we considered it crucial to find a special solution, in the interim. Today, we have made a headway on that,” Sarma said.

    The chief minister further said that true to the “government’s commitment and for the welfare of the tea garden workers, we will raise the remaining Rs 12 after initiating consultation with stake holders and we are confident that an acceptable solution will be found out very soon”.

    The meeting was attended by Minister Industries and Commerce Chandra Mohan Patowary, Minister for Tea Tribe Welfare Sanjay Kisan, MP Pallab Lochan Das, MLA Rupesh Gowala, President Assam Chah Mazdoor Sangha Paban Singh Ghatowar and senior officials of the state government.

    The hike in daily wage of tea garden workers was a major campaign issue in the just concluded Assam assembly elections with the opposition Congress promising to increase it to Rs 365, if the party was voted to power.

    Tea tribes constitute 17 per cent of Assam population and 35 per cent of its electorate.