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24/01/2022 - Government Policies

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January 24, 2022

The recasting of commodity boards by Government of India on planatation is a step in the right direction and must not be delayed. Explain (200 Words)

Refer - Business Line

Enrich the answer from other sources, if the question demands.

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IAS Parliament 2 years

KEY POINTS

·        Union Government has come out with a draft Bill that seeks to replace the Tea Act, 1953, with Tea (Promotion and Development) Act, 2022.

·        The proposal envisages recasting the boards of such entities. The Boards, which had the powers of giving license for planters, will now be restricted to branding and promoting their respective commodities, if the draft proposals are accepted.

·        According to the draft, the Boards should work towards optimising the production, sale and consumption of tea by promoting exports and also encouraging the sale of tea through e-commerce platforms.

·        Domestic demand being 83 per cent of production volume is definitely more important in today's scenario, but exports remain the balancing factor that shore up the already low price realisation that the tea farms get today.

·        There are many local and State acts which govern the industry. Besides, by empowering the States to give license the law will also ensure that forest land is not used for plantation.

·        While the draft is a step in the right direction, the devil lies in detail, therefore how the final proposal shapes up will be the key indicator of how far the government is willing to go.

 

 

KAUSHIK SRINIVASH R 2 years

Kindly review...

IAS Parliament 2 years

Good attempt. Keep Writing.

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