Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 748 Wed. July 05, 2006  
   
Business


India-Lanka tea pact soon


With a view to give a boost to tea trade, India and Sri Lanka would be signing a Comprehensive Economic Partnership Agreement (Cepa) very soon, according to the Indian Tea Board chairman, Basudev Banerjee.

Speaking to reporters on the sidelines of the annual general meeting (AGM) of Tea Auction Buyers' Association of Calcutta (Tabac), Banerjee favoured greater imports of tea from Sri Lanka saying that this will only be possible if Sri Lanka takes the initiative and India develops a taste for the orthodox tea. While India can import up to 15 million kg of tea at 7.5 per cent duty from Sri Lanka, it only imported 0.1 million kg last year.

The Tea Board would be seeking higher Plan assistance during the 11th Plan. Banerjee mentioned that during the 10th Plan the total funding was Rs 470 crore (US$102 million) and they plan to spend around Rs 500 crore (US$108.8 million) in the next five years. Much of the funds would be utilised for primary marketing of tea and exports.

The Tea Board chairman also underlined the need for e-auctioning which is at the nascent state in some parts of South India such as Coimbatore and Cochin. However he said it would take some time to implement the system with full effect.