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GOVERNMENT OF TAMIL NADU ABSTRACT Small Industries-Problems faced by Small Tea growers-Setting up of Auction Centre at Coonoor in the Nilgiris District-Announcement made by Minister (Rural Industries) on 12.4.2002 on the floor of Tamil Nadu Legislative Assembly-Orders issued. SMALL INDUSTRIES (SIA) DEPARTMENT G.O.Ms.
No. 36 Read: From the Additional Commissioner of Industries and Commerce D.O. Letter No. 31221/ICM2/2002 dated 6.5.2002.- -- ORDER: In order to ameliorate the falling economic condition of small tea growers, the Government took various measures with a view to improve the realization of made tea prices in the Auction centres. The introduction of ‘ Ooty Tea’ and their sales through the Public Distribution System shops were introduced to this end. Besides various programmes for marketing ‘Ooty Tea’ and upgrading the quality of tea was also undertaken by the Tea Board and Indcoserve. The Government continues to view with concern the lack of ‘true price discovery’ for the primary producers in the last few years. In order to ensure a fair transparent price realization for the primary producers which is linked to transactions in the Auction centre and considering the various inadequacies pointed out in the ‘ Ferguson Report’, this Government took the important decision to set up an ‘ Auction Centre’ at Coonoor. It is expected that this Auction centre will function in fair manner and remove the distortions that had crept in in the existing system. 2. There had been complaints from the small tea growers that all is not well with the auction centre at Coonoor. While the retail price of tea for consumer is very high throughout, the price realised in Auction is going downwards continuously for no logical reason. Tea growers including small farmers legitimately feel that due to possible forming of a syndicate by brokers and traders they are not getting economic price for their produce. This problem was studied in depth by the Government. Several intensive inquiries with various sections of the tea industry to understand the mechanism of tea auctioning in Coonoor were made. Discussion with various interested parties concerned with the Auction centre were held to explore the possibilities of reforming the Auction procedure and also re-organising the Auction Management Committee. As the problem of low realisation of price for the green tea leaf persisted even after various remedial measures, after careful consideration of the matter, it has now been decided to open an Auction centre for tea at Coonoor 3. While replying to the debate on Demand for Grants relating to Small Industries Dept. on 12.4.2002, M(RI) has made an announcement as indicated below: “Considering the deficiencies in the private Auction Centres the Government will set up an Auction Centre at Coonoor for the benefit of small Tea growers and other producers of tea.”
4. The Additional Commissioner of Industries and Commerce in the letter read above has submitted proposals for setting up of Auction Centre on Co-operative basis with Government share participation with the following objectives and has requested for approval of the proposal in principle:- (i)
To ensure that reasonable and remunerative prices are paid to Tea
manufacturers and thereby to Small Tea Growers. 5. The Government after careful consideration have decided to accept the proposal to set up an Auction centre with the objectives specified in para 4 above for the welfare of small tea growers in Tamil Nadu on cooperative basis. They accordingly pass the following orders :- a. A separate Industrial Co-operative society to act as an Auction Centre shall be formed at Coonoor and action will be initiated to register a co-operative society and necessary proposals will be sent to Tea Board/Government of India for obtaining licences approval for conducting the Auction of Tea. b. The Small scale tea producers and the small tea growers shall be represented either as members or Associate members. Similarly a representative Director of the Small Tea Growers may also find place in the Management Committee at the initial stage c. The Society shall be formed without any contribution from the Government by mobilishing additional share capital from the members and by bringing down the cost of capital items by having a tie up with private/public companies for offering hardware and software services on payment of user charges. d. The Society will also have tie up with consortium of Banks for cash credit facilities to meet the working capital requirement. e. The Society shall approach Tamil Nadu Industrial Investment Corporation Limited and TAICO Bank for necessary funding. 6. The Director of Industries Commerce and the Special Officer, Indcoserve are requested to take immediate action in this regard so as to ensure speedy implementation of the project and send periodical report every fortnight. 7. This order issues with the concurrence of Finance Department vide its U.O.No.176/ADS/Dr KSG/02 dated 16.7.2002. (BY ORDER OF THE GOVERNOR)
K. SKANDAN, To The
Director of Industries and Commerce, Chenai-5. Copy to: The
Secretary to Government, Finance
Department, Chennai -9 // forwarded by order // SECTION OFFICER. |
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