The Assam Government has warned the tea companies not to bypass the Guwahati Tea Auction Centre or the Government will be forced to withdraw all the subsidies and tax benefits, which they are enjoying.
Assam Industry Minister Pradyut Bordoloi said this on Tuesday adding that the State Government has been losing revenue as some of the tea companies and bought leaf factories are bypassing the GTAC and selling their products through auction centres in other places of the country. “I have already written to some of the companies and bought leaf factories asking them to sell their products through the GTAC. The Government has been giving lots of subsidies and tax benefits to these
companies who are operating in Assam. So they should also sell their products through the GTAC,” said the Minister. “We are now looking into the matter on how we can make it a bounding on them (the tea companies and bought leaf factories) to sell their tea through the GTAC,” he added. “Many companies transfer their stocks to other States and sell the products through the tea auction centres in those States. The concerned State Government gets the revenue due to this for tea produced in Assam. This is not fair on their part as the State Government had been giving so much of subsidy and tax benefits to the factories and planters here to boost the tea industry,” he said.
Giving statistics, Bordoloi said that although Assam produces 55 per cent of the country’s total tea production, yet only 27 per cent of the tea produced here is sold through the GTAC. “last year the country’s total tea production was 1,132 million kg and the Assam’s share was 55 per cent of it. However, only 116 million kg were sold through the GTAC,” he said.