ITA seeks intervention for revival of tea sector

A day after a specialty tea created history by fetching Rs 70,501 a kg, the Indian Tea Association (ITA) here on Thursday appealed the government to ban expansion of tea estates in five areas and pay provident fund (PF) contributions of workers for three years.

Stating that the tea industry is in crisis, the ITA said viability of the sector was critical for job security of over million workers. While the average selling price had remained static, the production cost was increasing, causing losses to tea producers, it said.

"The PF contribution by the government for three years will provide immediate relief, besides releasing substantial fund for generic promotion of tea," the ITA said. It also demanded minimum reserve price for tea at auction based on cost of production.

On Wednesday, an Orthodox Golden Tea tips fetched Rs 70,501 a kg at the Tea Auction Centre, here, to rewrite the record set on Tuesday when Manohari Gold Tea attracted Rs 50,000 a kg. IANS