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March 2, 2001 | Feedback |
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Sector Focus : Tea And CoffeeState of the industry (2000-01) Tariffs and prices
1 Calcutta auction price Source: CRIS INFAC
State of the industry (2000-01)
Budget impact Impact factors
Note: Figures in brackets indicate the closing share prices, on February 27, 2001 and February 28, 2001, respectively. pos= positive. Source: CRIS INFAC A: Tea and coffee imports are expected to be brought under the OGL, from April 2001, under the WTO agreement. The customs duty on both tea & coffee has been increased, from 44.04 per cent to 76.8 per cent. Although this is expected to help in restricting tea imports, domestic coffee producers are not expected to benefit as currently, domestic coffee prices are lower than international prices. B: The increase in the deduction rate of upto 40 per cent would enable producers (growers) to increase funds for development purposes. Under Section 33 AB of the Central Income Tax Act, tea growers and manufacturers were eligible for a deduction of upto 20 per cent of the sum deposited with the National Bank for Rural and Agricultural Development, (or in such other account as approved by the Tea Board) or 20 per cent of their business profit, whichever is lower. C: The reduction of surcharge on corporate tax, from 13 per cent to 2 per cent and the expected decline in interest rates, is expected to have a positive impact on producers. Rediff-CRISIL Budget Impact Analysis
Disclaimer: CRISIL has taken due care and caution in compiling this report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CRISIL is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of its web site. |