Question : COST OF PRODUCTION OF TEA

(a) the average cost of production of tea in different States alongwith the Labour cost;

(b) the difference between the average cost of production of tea in India and those of the neighbouring countries such as Srilanka, Bangladesh and China; and

(c) the comparative cost of imported tea from these countries and others alongwith the custom duty thereon?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI OMAR ABDULLAH)

(a) : The average cost of production of tea and labour cost in major tea producing States is given below: Cost of Production (Rs./kg)

Districts/States	Cost of Production Cost of Labour+	Minimum Maximum
Assam Valley 54.00 67.00	34.10
Cachar 49.00 59.00	29.35
Dooars 53.00 63.00	31.80
Terai 53.00 62.00	31.80
Darjeeling 130.00 170.00	31.80
Tripura 44.00 50.00	Not available
Tamil Nadu	64.20	62.63
Kerala 71.70	64.19
Karnataka 42.61	56.25

+ Denotes daily wages only. Apart from this, the labourers are entitled for plucking incentives and other benefits like housing, medical facilities, subsidized food, educational benefits etc.

(b) : The cost of production of tea in India is higher than those in other tea producing countries including Sri Lanka. The cost of production of tea in North India is US $ 1.62 per kg and in South India it is US $ 1.48 per kg whereas in Sri Lanka it is US $ 1.46 per kg. While the difference between average cost of production of Sri Lankan tea and tea produced in North India is US $ 0.16 per kg., the same in the case of tea produced in South India is US $ 0.02 per kg. Figures on cost of production of tea in Bangladesh and China are not available.

(c) : The unit price (CIF) of tea imported from Sri Lanka, Bangladesh, China and other countries for the period April-November 2000 are as follows:-

Name of the Country Unit CIF Value (Rs./kg)
Sri Lanka 84.25
Bangladesh	47.58
China 166.00
UK	91.46
Belgium	82.19
France 124.02
USA	63.10
UAE	25.25
Iran	30.62
Turkey	36.06
Singapore 179.93
Indonesia	59.44
Vietnam	51.07
Kenya 101.29
West Africa 83.90
Malawi	54.35
South Africa	49.70
New Guinea	51.41

For import of tea from any country including Sri Lanka, the basic customs duty is 70% plus additional duties. However, for import of tea from Sri Lanka under the Free Trade Agreement, the applicable custom duty is 7.5% for an allocated annual quota of 15 m.kgs.

Question : COST OF PRODUCTION OF TEA

Answer given by the minister

Search

More from COMMERCE AND INDUSTRY

Other Ministries: