Date:06/06/2006 URL: http://www.thehindubusinessline.com/2006/06/06/stories/2006060603040800.htm

Back W. Bengal, Tea Board, Apeda to sign MoU soon

Our Bureau

AEZ for Darjeeling tea gardens

Kolkata , June 5

The West Bengal Government, Tea Board and Agricultural and Processed Food Products' Export Development Authority (Apeda) will soon sign a memorandum of understanding for converting Darjeeling tea industry into an agri-export zone (AEZ).

This was announced by Mr Basudeb Banerjee, Chairman of Tea Board, at the 17th annual general meeting of Darjeeling Tea Association on Monday.

According to him, the agreement will be signed shortly. Once the MoU is signed, the existing Central welfare schemes for the promotion of the tea industry would be clubbed and taken as one.

The AEZ would cover all the 27 gardens in Darjeeling. Once its formation is over, it would be easier for the gardens to get incentives from the Union Government. For the protection of the Darjeeling tea industry's IPR, the Tea Board Chairman said the Union Government was bearing an annual expense of Rs 60-70 lakh. He felt that ultimately the industry would have to bear as it was becoming unsustainable for the Centre.

Mr Banerjee said till now the primary focus of Darjeeling tea industry was exports and, he felt, it should change. "There is a need to increase the domestic consumption of Darjeeling tea," he said.

At present, the average annual production of Darjeeling tea is 10 million kg (mkg) and out of it domestic consumption is approximately 2 mkg. The key export markets are Germany, the UK, Japan and the US.

Centre for excellence

Meanwhile, the industry and Tea Board has decided to create a centre for excellence for the Darjeeling tea sector. It would be managed by Darjeeling Tea Association.

The existing Darjeeling Tea Research & Development Centre, which is located at Kurseong, would be transformed into this centre for excellence after upgrading its facilities.

"It would also work as the nodal institution on behalf of the industry to address all matters related to AEZ," Mr Sanjay Bansal, the outgoing Chairman of the association said.

In another development, Mr Banerjee said IIT Kharagpur was helping the Darjeeling tea industry for modernising some of its old engineering modules and practices.

"It would be funded through the National Tea Research Fund. A consolidated project is being prepared. IIT Kharagpur would work new ways on energy efficiency and production increase," Mr Banerjee said.