Guwahati: Non-opening of supply chain and destination markets due to the ongoing lockdown have worried Assam's 197-year-old tea industry.
Although the planters and tea gardens have resumed plucking and production of tea from April 15 yet only 50 per cent of the total labour force were allowed to be engaged for production, which will affect the overall production of the industry.
Adviser to the North East Tea Association (NETA), Bidyananda Barkakoti revealed this to ETV Bharat during an exclusive interview and said that they have appealed to the Prime Minister, Union Finance Minister and the Union Commerce Minister for some urgent steps to ensure the survival of the tea industry.
"The supply chain is yet to be restored. The destination markets are yet to be opened. There is a huge market for Assam tea in places like Gujarat, Rajasthan, Mumbai, Delhi etc. If the markets are not opened and there is no cash flow, the industry will be in trouble," he said.
Barkakoti said that the 197-year-old tea industry in Assam is a labour-intensive industry but there is no system called layoffs in the industry.
"In the history of the tea industry, there have been no layoffs like it happened with some airlines and some other companies due to the lockdown. However, we are worried now as there is no cash inflow," he said.
"Cash Liquidity is a big problem that we are facing now. The central government must come forward to ask the banks to give us at least 50 per cent more working capital than we have now. The loans should also be auto-generated in easy terms and condition," he said.
Barkakoti also apprehended that 50 per cent of the export of tea could go down this year as countries like Iran and China, which are bulk exporters of Assam tea, are also suffering due to the COVID-19.
The season for the tea industry starts from Mid March and it continues till December end after which there is a lean period. The ongoing lockdown forced the gardens in Assam to stop plucking and production from March 22 till April 14. As per a study conducted by NETA, the industry had lost revenue of Rs. 1218 crore during this period.
"We have also appealed to the state government to keep in abeyance the electricity charges and the minimum demand charges of Assam Gas Company Limited at least for three months as the operation was suspended. Secondly, we have also appealed to the Assam government to follow the Central government' policy by depositing the PF amount of our workers for three months," he said.
It may be mentioned here that Assam alone produces 52 per cent of the country's total tea.
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