Niti Aayog to scan expenses, projects of tea, 3 other agri boards

Kolkata: The NITI Aayog has ordered a thorough evaluation study of the country’s four agri-commodity boards –

Tea Board

,

Coffee Board

,

Rubber Board

and

Spices Board

– and their ongoing schemes, upon an instruction from the department of expenditure under the Union finance ministry. For over a decade or so, the utility, functioning and importance of these agri-industry regulators have been under the Central government scanner. Sources in the government and industry believe that the latest process as initiated by the Development Monitoring and Evaluation Office (DMEO) of NITI Aayog seems to pave the way for a possible merger or a complete dissolution of this quartet.

In a letter dated January 13 this year, the NITI Aayog informed Union commerce secretary B V R Subrahmanyam that these evaluation studies, to be carried out by DMEO, will involve “analyses of time series data and information contained in documents such as annual report, other progress reports, scheme documents and evaluation reports, as well as multi-stage primary survey involving national, state, district, block and village-level stakeholders and beneficiaries of the schemes…”

Replying to a question on the possible impact of the study, K N Raghavan, deputy chairman of the Tea Board India, said that it would help get new inputs to improve the plantation industries in India. “Merger and dissolution of agri boards can happen only through a big policy decision at the top. This study would focus on reorientation of various parameters of the boards to uplift quality, performance, exports and value-added business. We may be given the responsibility to look after quality and focussed promotion for a better return on investment through effective use and rationalisation of resources.”

At a time when the Centre is planning to repeal the Tea Act of 1953 and the Coffee Act of 1942, to be replaced by new regulations, the whiff of the merger or disbanding of the agri boards which had been doing the rounds for the last few years has resurfaced among the people involved with the plantation business.

K G Jagadeesha, secretary of Coffee Board of India, told TOI: “Such a detailed ground-level study is expected to bring in some changes in the board’s functioning. It may come up with unique ideas for the sector’s uplift. But we can’t discuss on it now as it is in a premature stage.”

He added that a couple of similar kind of studies by IIM Bangalore and Ernst & Young have already made a positive influence on the coffee sector.

Arijit Raha, secretary-general of the premier planters’ body, Indian Tea Association (ITA), feels that the roles played by the Tea Board and any other agri boards cannot be ignored. “Priorities and job profile of these boards may change with the change in time. But they help industry stakeholders reach out to the top Central government authorities. Tea Board functions as a reference point for advocacy. Dissolving this board will only add to the current woes of the industry. We are keenly waiting to see the outcome of this study with the latest feedbacks of the people involved,” he said.

The consultancy work of the study, involving field work and draft preparation, have been entrusted to Arun Jaitley National Institute of Financial Management (AJNIFM) and ISSRF for Tea Board and National Institute of Labour Economics Research and Development (NILERD) for the three other boards.

According to the commerce ministry sources, all the three financial agencies have already got in touch with the respective agri-boards and various stakeholders involved in the implementation chain of tea, coffee, rubber and spices to elicit information.

The NITI Aayog has also urged the commerce ministry to instruct all the boards to provide required permissions, full support and cooperation to DMEO and appoint a single point of contact in each of the boards to facilitate seamless communication during the study.