Rediff.com« Back to articlePrint this article

Tea traders, producers begin 2-day strike

April 21, 2003 20:04 IST

Close on the heels of truckers' strike, tea traders and producers across the country on Monday began their two-day nationwide agitation in protest against the proposed 12.5 per cent tax slab on tea under the value-added tax regime.

More than 10,000 whole-sellers and retailers pulled down shutters on the first day of the strike which has been called by the National Tea Auction Buyers and Traders Association.

Tea traders in Delhi, Haryana, Rajasthan, Punjab, Himachal Pradesh, Maharashtra, West Bengal and north-eastern states kept their establishments closed and tea auctions at Kolkata, Guwahati, Coimbatore, Cochin and Siliguri were also boycotted, Confederation of All India Traders claimed.

It also claimed that about 50,000 grocery shops across the country abstained from selling tea in support of the bandh.

The striking traders from upcountry would meet on Tuesday in the national capital to decide the future course of action.

North zone convenor of the Tea Association, Anil Jain said tea should be considered an essential commodity like foodgrain and sugar and should be placed under the four per cent slab.

Keeping the commodity under 12.5 per cent slab would directly hit the consumers and have an adverse effect on the tea industry, he said.

Trade delegations have submitted their view on VAT at various forums but no costructive approach has come from any Government which has created confusion in the trade markets, CAIT General Secretary, Praveen Khandelwal said.