Planters disappointed with TN budget

By V. Jayanth

CHENNAI, AUG. 21 The Planters' Association of Tamil Nadu has expressed its ``disappointment'' over the State budget as it provided no relief to an industry in crisis.

According to its Chairman, Mr. D. P. Maheshwari, almost every estate has been incurring and accumulating heavy losses. In tea, the average cost of production was Rs. 63 a kg, while the average price realisation was below Rs. 48. Coffee has recorded the lowest price in over two decades, even while the costs continue to rise.

``Apart from the fact that there is no relief, the proposed levy of additional sales tax of one per cent on turnover of Rs. 10 to 25 crores will add to the burden of the tea producers, because the tax has to be paid by the seller dealer, unlike in general sales tax. This cannot be recovered from the buyers. This proposal should be dropped,'' he argued in a statement.

Mr. Maheshwari said it was unfortunate that the Centre and State governments ``refuse to or are unable to take serious notice of industrial sickness at the proper time to take remedial measures, and wait until industrial sickness manifests itself in the form of actual closure of units.'' Closure of plantations would have a ``disastrous effect'' on plantations with their residential population, he warned.

While welcoming the lowering of the State GST to 4 per cent, the association pleaded for its further reduction to 2 per cent as a temporary measure. It wanted the same benefit to be extended to tea, coffee and rubber. In the case of tea, the concessional rate could be applied not only to auction sales, but for private sales too as the statutory compulsion to sell 75 per cent of the production through auctions had been removed.

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Section  : Business
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