Bangladesh Tea Association on Tuesday demanded the government to reintroduce 20 per cent supplementary duty on import of tea to protect local producers from uneven competition and save domestic industry. At a meeting with commerce minister Tofail Ahmed, leaders of the association placed their 8-point demands, saying that local producers and exporters were facing tough competition due to import of low quality and cheap tea.
According to association data, import of tea has increased manifold in 2013 due to withdrawal of supplementary duty and stood at 10.62 million kg from 1.92 million kg imported in 2012.
Bangladesh annually produces around 62 million kg of tea against the average internal demand of 56 million kg of tea, it said. In 1970, Bangladesh had produced 32.40 million kg of tea.
Because of huge import, local tea producers were not getting fair price while a significant quantity of tea remained unsold in every auction in Chittagong, BTA pointed out.
There are a total of 110 per cent duties on import of tea in neighboring India.
The association also urged the government for reduction of interest rate on loans for tea production and development to 11 per cent from the existing 13 per cent.
It also sought uninterrupted electricity supply to tea estates, new connection to 30 gardens remaining powerless and gas connection to gardens in Chittagong region for ensuring continuity in tea processing and improving the quality of tea.
Commerce ministry officials who attended the meeting said that Tofail assured them of taking appropriate steps to solve their problems and he would talk with the finance minister in this connection as fulfilling some demands requires changes in policy issues.
BTA also sought financial assistance from the government for development of the tea sector referring that they needed approximately Tk 40 crore to Tk 60 crore a year for the purpose.
Another Tk 120 crore is needed in next five years for welfare of workers including construction of home, and arranging education, sanitation and health facilities for them.
According to Bangladesh Tea Board there are 165 tea estates in the country situated in Moulvibazar, Sylhet, Habiganj, Chittagong, Rangamati, Brahmanbaria and Panchagarh districts.
Of which, 91 tea gardens are situated in Moulvibazar, 22 in Habiganj, 19 in Sylhet, 22 in Chittagong, 9 in Panchagarh and one each in Rangamati and Brahmanbaria.
BTB data showed that though tea production had increased significantly in last four decades, tea export has been declining over the years as Bangladesh exported only 1.11 million kg of tea in the year 2012 which was 18.10 million kg in 2000.
BTA leaders said that the volume of export fell drastically mainly due to increase in domestic consumption.
In 2000, domestic consumption was only 35.05 million kg of tea which stood at 56.80 million kg in 2012.
-With New Age input
