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Sunday 24 June 2007

Hard times for Chopra growers

RAIGANJ, June 24: More than a fortnight has passed since North Bengal Tea Agro Ltd situated at Charu Guchh of Chopra in North Dinajpur district has stopped production.
Yet the district administration has not taken any initiative to reopen the factory.
A good number of small tea gardens in the region which sold tea leaves to this industry are facing a hard time .Reportedly, the rate of tea leaves has gone down from Rs 9 to Rs 6 per kg.
This industry was one of the biggest tea production units in Chopra block. .After the factory authorities started the suspension of products since 7 June, the demand of tea leaves has reduced in the region.
Mr Ashok Roy, a member of the North Dinajpur Intuc, said that North Bengal Tea Agro Ltd was the major purchaser of tea leaves in Chopra .This factory required six to seven tons of tea leaves everyday. After the unit was closed, the production of tea leaves is becoming surplus, as a result of which its rate has gone down.
The tea industry in North Dinajpur has been severely affected. More than 100 workers are suffering. Last week, Mr Jagdish Prashad Mina, the SDO, Islampur was requested to take measures, so that the factory is reopened soon.

KTDA to open tea processing machines plant

Zeddy Sambu
The Kenya Tea Development Agency plans to set up a tea processing machinery factory as it pursues a diversification strategy.The firm, which is owned by nearly 500,000 small-scale farmers, has approached several engineering firms to partner it in the project.
The KTDA board plans to meet this week to finalise details of the venture into heavy manufacturing .
The agency says funding would be factored into its upcoming 2007/2008 budget, and requests for further funds would be tabled later at the Annual General Meeting.
KTDA’s move into manufacturing comes as market forces such as a stronger shilling, poor weather and a glut of tea in international markets saw falling production and earnings last year.
The agency’s managing director, Mr Lerionka Tiampati told Business Daily that the engineering firms—JF McCloy, Marshall Fowler, Warren Enterprises, Paper Packs and East African Foundry Works have been engaged in the talks and one would soon will soon be shortlisted after a financial and technical evaluation is completed.
The KTDA boss says the company, which has been out of State hands since 2000 must look at various options to cushion itself from unpredictable markets.
The firm’s estimates show sales revenues have plummeted by more than Sh1 billion as the shilling continued to gain ground against major currencies, especially the US dollar.
In 2006, a kilogramme of tea sold for $2 but now fetches 17 per cent less, at $1.70.“We are a major player in the industry .
We should be able to supply ourselves and have stake in the supply process,” Mr Tiampati said.Since going private, the company has expanded its asset base to reach Sh7.9 billion and has a total turnover of around Sh27 billion.
Though some industry players are critical of the move away from strictly promoting and selling tea, KTDA maintains that its board, on which sit 12 farmers’ representatives, is unanimous about the venture set for the coming year.
The announcement comes as mixed patterns prevailed in this week’s world tea auctions. Production had dwindled from April at only 0.82 per cent over the similar period in 2006, when the country was going through a severe drought.
KTDA, which manages 54 factories , competes with 39 other factories owned by tea multinationals and other private producers.
Over the years, small holder production has maintained a constant 90,000 hectares under tea, while estate farming adds up to half of that acreage.
Small scale farmers account for more than 66 per cent of total tea exports, which largely go to Pakistan, the UK, Egypt and Afghanistan. But over the last five years, some of the biggest world importers of tea, such as the US, UK and Germany have been buying less.
Van Rees, a tea industry consultancy, says on its website that the Mombasa Tea Auction saw declining prices, countering a sharp rise in the past two weeks, and noted drier east African weather was keeping production lower.
While areas east of the Rift Valley have seen sporadic showers, and the western regions have had some rain, weather has been mostly dry and the crop slightly down.
The report found global demand for Kenyan tea remained “patchy” with buyers showing more caution.
The lower demand saw sales in Mombasa of 145,354 kg of local tea varieties, though off-grades gained especially with importers Pakistan, Egypt and the UK.Analysts say the export duties, which were increased by one per cent in the latest Budget, have taken some wind out of Kenyans’ sails.

Bansal and party don’t bother to book venue for tea

Chandigarh : It requires advance booking if you want to hold a function at a community centre of the Municipal Corporation. But such formalities are easily forgotten if the person in question is a VIP.

Union Minister of State for Finance, Pawan Kumar Bansal, in fact, went as far as distributing invitation cards for a function without bothering to book its venue — the newly-inaugurated Sector 28 community centre.
While the community centre was inaugurated (by Bansal himself) this Saturday, the invitation cards were distributed a couple of days before the inauguration.

According to the invite, the minister had invited Congress activists of ward number 18 for a tea party at the community centre of Sector 28 B at 5 pm. on Sunday.

The community centre was, however, not booked for the purpose till afternoon.

When Newsline contacted the Junior Engineer of Ward Number 18, Dalbir Singh, around 11 am and asked about the status of booking, he expressed his ignorance about the function.

“I have no information about any such function; the community centre has not been booked by the minister for the purpose either,'' he said.

Sources told Newsline that no booking fee has been paid for the function that is to be held at the community centre.

Around 12.15 pm when Newsline again visited the community centre, the person responsible for bookings informed that Congress councillor Davinder Singh Babla had booked the place for three hours from 4 pm to 7 pm after a payment of Rs 285. “As they are using the lawns also, we would charge the entire amount from them,”he added.

Babla, on the contrary, said they have booked the community centre for the entire day by paying Rs 2,500. “As the community centre was inaugurated only yesterday, advance booking was not possible. But this morning we paid Rs 2,500 for its booking,'' he added.

A councilor, expressing his resentment, said while officials are available for booking a community centre for a minister even on Sundays, they are not available for ordinary people even during working days.

Owners wary before tea garden reopening

SOHINI MOOKHERJEA
Calcutta, June 24: .P. Agarwal, who is set to buy the Bharnobari tea estate, is unsure of reopening the garden because of outstanding dues and excess workers.
This is one of the two closed gardens that are scheduled to reopen on June 29 in the presence of the minister of state for commerce, Jairam Ramesh. The other garden is the Red Bank, owned by Robin Pal.

Pal, who also reopened the Surendranagar garden in the state, was recently attacked by 200 to 300 Citu workers on a visit to the Red Bank. However, he is optimistic of reopening the garden on time.

According to Pal, the trouble was created to show law and order problems where none exist.

“Most of the workers want me to start operations. The disruption was just to create problems to prevent Ramesh from visiting this garden on June 29,” Pal added.

Ramesh’s last visit was cancelled because of security concerns.

“I have reopened my other garden, which Ramesh is scheduled to visit, and will also reopen Red Bank,” said Pal.

Agarwal, who is also the chairman of Ambo Exports Ltd, said, “The situation at the Bharnobari estate is under survey and we will get a full report. There are dues of agricultural cess amounting to Rs 2.5 crore, provident fund worth Rs 2.3 crore, labour costs of Rs 1.7 crore and a litigation involving electricity dues worth Rs 1.3 crore.”

“We are trying to help the government and the Tea Board by taking over the garden but cannot do so at the cost of our business. It will take at least three to four years to nurse the garden back to health,” he added.

Agarwal and other private players are awaiting schemes from the state government that will make investment in closed gardens more attractive.

Ambo Exports wants the continuation of the monthly allowance of Rs 750 to workers from the state government and a small amount of ration till the garden is brought back to health.

Agarwal, who exported around 25 million kg tea last year, said Bharnobari had 2,200 workers, while the requirement was for 1,400 only.

“Who will bear the cost of the extra 800 workers and why will anyone do so?” Agarwal asked. Ramesh was disappointed that only one garden opened in Bengal vis-à-vis seven in Kerala.

Instead of invoking section 16 (D) of the Tea Act of 1953, the government should look at providing more benefits to owners to reopen their gardens, Pal said. Section 16 (D) of the Tea Act enables the Centre to recommend the Tea Board to take over the management of a closed garden.

Secret of two lives: tea and only tea

Secret of two lives: tea and only tea- Brew binds Burdwan duo who have never met each other
ABHIJEET CHATTERJEE & INDRANIL SARKAR

Bhismadeb (top) drinks tea from a bowl; Debabrata sips his from a glass. Telegraph pictures
Burdwan, June 24: Mealtime means teatime for Bhismadeb Sarkar and Debabrata Dutta.

The brew has been 80-year-old Bhismadeb’s food and drink for the past 22 years, and 62-year-old Debabrata’s for 12. The two tea drinkers don’t know about each other although both live in Burdwan district.

A resident of Daihat in Katwa, about 170 km from Calcutta, Bhismadeb gave up food for ever when wife Krishnarani served lunch half an hour late one afternoon 22 years ago.

The owner of a bicycle repairing shop, Bhismadeb always had his lunch at 1 pm sharp.
“One Sunday, my wife served me lunch at 1.30 pm. She knew how particular I was about being served lunch punctually but still she was late,” he said.

“I became so angry that I threw away the plate of rice, fish and vegetables. I decided to stop eating totally.”

Krishnarani and her sons pleaded with Bhismadeb repeatedly, but he would not touch food. “Call me crazy if you like but since then I have not had anything except tea. I drink 18 to 20 cups daily without milk,” Bhismadeb said, sipping the brew.

His wife still feels sorry for having served lunch late that afternoon in 1985, but Bhismadeb feels fine living only on tea.

His eldest son Manik, a grocer, thinks Bhismadeb is eccentric. “What was wrong with mother serving him lunch late? Such things can happen. I tried so many times to persuade him to eat but he wouldn’t listen.”

A week ago, Bhismadeb was admitted to Katwa sub-divisional hospital with chest infection. He was discharged today.

Debabrata decided tea would be his only food after he was reduced from riches to rags.

The bachelor makes a living washing dishes in a small eatery at Purbasthali bus stand, about 190 km from Calcutta.

Born in a well-off farmer’s family in Nadia’s Kaligunj, he had thought there would never be any need to work. After his father’s death, the school dropout inherited about Rs 8 lakh.

He was in his mid-thirties and thought the money would see him through the rest of his life. In 10 years, the lakhs were gone.

Debabrata came to Purbasthali in Burdwan, 45 km from Kaligunj, and took up the job of washing dishes. His pay: Rs 100 a month and 22 cups of tea every day.

“I don’t like eating ordinary food like rice and vegetables,” Debabrata said. “The hotel owner, Subrata Sit, offered me Rs 100 a month and a lunch of rice, lentils and vegetables every day. I refused it.

“I have never tasted such food in my life. I used to eat quality rice, meat and various kinds of fish delicacies.”

Instead of eating “run-of-the-mill” food, Debabrata chose to drink only tea. He lives in an abandoned room on the premises of the Purbasthali health centre.

Doctors at Burdwan Medical College and Hospital said a person can survive on tea but would lose physical strength and resistance. “An adult needs 1,500-2,000 calories and at least 1.5 litres of water daily which Bhismadeb and Debabrata are getting from tea,” said Dr Madhusudhan Chatterjee.

“Normally, a cup of tea contains around 100 calories, which means they are both getting around 2,000 calories daily.”

Hospital superintendent Debashish Bhattacharjee, however, warned: “They would fall ill sooner or later. Everyone needs a balanced diet.”

Tea pricier than gold has a nation of savers hooked

David Eimer
CHINA'S stockmarket may be booming and its house prices soaring, but the hottest investment in the country is a small, compressed cake that smells vaguely earthy and is wrapped in paper.
Pu'er tea, a strong, aromatic brew from the remote south-western province of Yunnan, has long been prized in China for its medicinal properties.

Now, instead of drinking it, millions of Chinese are hoarding it after the price jumped 50 per cent last year.

Like fine wine, Pu'er tea is considered to improve with age. In 2005, 500 grams of 64-year-old Pu'er tea sold at auction for 1 million yuan ($155,000) - making it six times more expensive than gold.

The price has been rising since 2003, when investors in southern China and Hong Kong realised that, with a limited amount of tea grown each year, they could drive up its price by storing the tea rather than selling it.

Three weeks ago an earthquake hit the Pu'er tea-growing region, prompting fears of a shortage and causing a sharp increase in the price of the most recently produced tea - which might have been harvested up to two years ago.

At the Maliandao tea market in south-west Beijing, Pu'er is sold in 350-gram cakes, which the vendors handle as gingerly as if they were rare antiques.

"The price of new tea has gone up 30 to 50 per cent since the earthquake," said Liu Na, of the Che Yun Shan Tea Company.

A cake of two-year-old Ye Sheng Gucha tea costs 260 yuan, while the 13-year-old tea sells for 1800 yuan. "It'll double in price in two years," Mrs Liu said.

Such returns are irresistible to people in the grip of a speculating frenzy. Traditionally the Chinese are savers. But in April and May savings declined for the first time in four years, according to the People's Bank of China, as people sought to cash in on the stock and property markets.

Pu'er tea is seen by some as an even more attractive option.

"You don't have to pay tax when you sell your Pu'er tea," Mrs Liu said.

The red-coloured tea has a distinctive taste, much stronger than green tea.

In the Huangshan Feng tea shop, the owner, Zhang Sheng Qin, held up a glass and swirled it around. "It's good for people who want to lose weight," she said.
Source : http://www.brisbanetimes.com.au/news/world/tea-pricier-than-gold-has-a-nation-of-savers-hooked/2007/06/24/1182623745480.html