GUWAHATI: The tea industry has faced a grave liquidity crunch in the wake of the complete lockdown from the evening of March 24 last which has further been in extended to May 3 next, according to the President of leading tea planters’ association, Tea Association of India (TAI), Raj Bansal
The industry, therefore, has petitioned the central government as well as respective state governments for a financial package in terms of Interest subvention, enhancement of working capital limit, relief in payment of electricity charges and Provident Fund dues.
However, the TAI has expressed its gratitude to governments of Assam and West Bengal for adopting a pragmatic approach in permitting tea gardens to deploy a section of employees for undertaking spraying and irrigation work while adhering to protocols of lockdown against COVID-19.
The lock down came close in heels at a time when the industry was gearing to begin the season after the closing of manufacture mandated by the Tea Board.
“Although gardens commenced operations in Assam from April 10 with 50 % of workmen and with 25% workers in west Bengal from April 12-13, the gardens had to skiff in order to maintain proper plucking table. This has led to loss in manufactured tea. A conservative loss in production projects a loss to the tune of 110 mkgs as per projections prepared by the Association with inputs received from M/S J. Thomas & Co Pvt Ltd,” Bansal informed.
“In the backdrop of above scenario, the industry expectantly looking towards a certain buoyancy in prices. The deployment of workmen being below the normal strength, the operational problem in continuing with this format is proven to be a grave challenge for the industry,” Bansal said.
A clear picture about the financial status of the industry will gradually emerge once normal operations resume with the full complement of workers in the garden rolls,. However, the industry remains optimistic at the export front.
“The Tea industry acknowledges the Government’s response in looking after the industry’s’ interest both in the states of Assam and West Bengal, and therefore it look forward to assist the industry in quickly achieving the rhythm of normal working operations in the tea gardens,” theTAI president said.