The eagerly awaited nationwide tea promotion campaign has run into rough weather. The high profile, multi-crore promo that was aimed to revive interest in the golden brew, has hit a bump following tea firms' reluctance to cough up money to form the initial corpus estimated at Rs. 16 crore.

While all companies agree to the need for a high-intensity campaign in the wake of low growth in consumption, they are facing a cash crunch now owing to sagging market. With the sales and revenue of all tea companies registering a decline during the first half of the current fiscal, none of them are in a generous mood.

A tea promo became necessary after it was detected that there has been a two percent decline in tea consumption in the country, which has been usurped by the soft drinks producers. " While there is no second thinking on the need for the promo, many are feeling the pinch as coffers are not in good health. All need to contribute as this is an industry-wide campaign," officials working on the campaign said. The Consultative Committee of Plantation Associations (CCPA), the apex tea body, has called a meeting on November 15-16 to discuss the issue. Incidentally, the campaign capsule was scheduled to have been finalized by September.

While CCPA had earmarked a levy of 10 paise per Kg. of tea produced from planters for contribution to the campaign, almost everyone have expressed their inability to make the payment in view of the current market scenario. Promotion campaign committee officials, meanwhile feel it is meaningless to begin the promo with inadequate funds.

"You need a minimum corpus to trigger off a sustained three-year campaign involving Rs. 16-18 crore. Running out of steam midway will defeat its very purpose," they felt.

Hardly any members of the Tea Association of India (ITA), Indian Tea Association (ITA) and United Planters Association of South India (UPASI) have chipped in any money to form the initial corpus to start the ad promotion campaign. Even the big growers have not put in their share of funds for the purpose.

The sagging tea market has also forced the small tea growers in Dooars and Cachar to opt for distress sale of tea to pay the workers in their respective gardens. The consignments are being brought at the Siliguri tea auction and sold at about Rs. 30-40 per Kg. much below the cost of production. This is being done to avoid any industrial relation problem.

The CCPA has also written to the commerce ministry and the Tea Board for part finance of the project. (10/11/2000)

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