SOUTH INDIAN TEA INDUSTRY 35 firewood, petroleum products and interest charges, especially in the recent period. Table I summarises the changes in various cost components in South Indian tea plantations during the period 1979-80 to • 1980-81.1 CHAH fGE IN AVERAGE COST OF P] Items TABL ilODUCTIC1[ E I (N OF SOUT(R979-80 H INDI.s per kg1 AN TEA PU?)980.81 ^NTAIIONSPercentageincrease » over1979^80 Cost Percentage to total Cost Percentage to total I Stores Consumed 2.63 23.23 3.33 23.77 26.60 II Labour Cost 5.09 44.97 6.81 48.61 33.79 III Executive & Staff Salaries 0.33 2.92 0.38 2.71 15.15 IVv Depreciation Taxes & Duties 0.28 1.19 2.47 10.51 0.32 1.20 2.28 8.57 - 14.29 0.84 VI Sundries 1.01 8.92 1.05 7.49 3.96 VII Interest 0.44 3.89 0.57 4.07 29.55 VIII Marketing & Transport 0.35 3.09 0.35 2.50 Nil Total 11.32 100.00 14.01 100.00 23.76 SOURCE: Commerce Ministry (Government of India), Note in International Seminar on Tea, New Delhi, January 1981,. During the period 1979-1982' the highest increase has occurred in the case of fuel prices (156 per cent), followed by input prices (75 per cent) and interest charges (35 per cent), both in'Kerala and Tamil Nadu.2 But during the same period wages have increased only by 51 per cent in Kcrala and 60 per cent in Tamil Nadu. 1 The trend in the average cost of production of tea in the South Indian tea plantations can be summarised (1950 to 1978)^ as shown in the following table. THE AVERAGE COST OF PRODUCTION OF TEA IN SOUTH INDIA Year Cost of Production (Rsfkg) 1950 2.79 1955 3.51 1960 3.86 1965 4.16 1970 4.71 1975 7.91 1977 9.33 1978 10.34 SOURCB; Tharian George K, "The Economics of Tea Plantations in South India", Ph D thesis submitted to the University of Cochin, 1982, p 141. 2 See, Revival and Development Plan 'for Kerala Tea Industry, p 9, and aLo see, Tamil Nadu Tea Industry—An Approach to Longterm Planning, United Planter^' Association of South India, Coonoor, 1983, p 13.