Wednesday, May 14, 2025
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Hit by COVID lockdown tea planters’ body seeks reliefs from Assam govt

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GUWAHATI: Like many other industries, venerable tea industry too is facing an unprecedented crisis because of restrictions and economic adversity precipitated by COVID-19 pandemic and related lockdown.

The adversity has forced the industry to knock at the door of Assam government seeking reliefs in various aspects to help it tide over the crisis.

The industry in view of the COVID-19 related shutdown for over two weeks, has estimated a countrywide crop loss of around 110 million kgs (mkgs) out of which around 60-70 mkgs will be in the state of Assam.

Tea Association of India (TAI), a leading tea planers’ body, has requested Assam government to relieve him of the onus of payment of full wages to workers during the COVID 19 lock down period because of the liquidity crunch.

The TAI has requested the Centre through Assam government to pay PF dues of tea workers for three months as proposed by the Central government by removing the criteria of maximum 100 workers as the tea industry is labour intensive.

The TAI maintains that in view of the present scenario, the ration to the tea workers on part of the management may be issued by the government for a period of next 6 months.

The tea plantation sector would require a 25% increase in working capital limits up to March 31 next year, to ensure that estates run smoothly and without any defaults. The TAI has requested for at least 10 % increase CC limit by banks across the board.

The TAI has sought one-year moratorium on all loan repayments and also interest payments to prevent most companies from becoming defaulters.

“Interest rate on all credit to tea gardens and tea companies to be reduced to 4 % per annum for the season 2020. If banks aren’t willing government should provide the necessary assistance to the banks and declare a relief package,” says the TAI memo to Assam government.

“We need interest subvention @3% on Term Loans and cash credit facilities. This needs to be extended for at least a year to reduce the financial stress on the industry,” the memorandum says.

The TAI has requested extension of last date for availing the Extension of Liquidation of Arrears Scheme by Assam government till June 30 this year.

“Government may kindly consider allowing deployment of workers for developmental work under MGNREGA within Tea Estate,” TAI requests.

The plantation association demands that benefit of Rs 1.70 lakh crore Pradhan Mantri Garib Kalyan Yojana be extended to tea garden workers.

The TAI has requested for waiving of demand charge by the APDCL for tea manufacturing units during lock down period.

The further urges Assam government to promote Assam Tea as an immunity booster by approaching the Ministry of Ayush

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