Assam's tea industry to lose Rs 1,218 crore amidst coronavirus lockdown

Even as the Centre allowed resumption of work in tea gardens with maximum of 50% workforce, the industry in Assam would witness a revenue loss of Rs 1,218 crore due to the lockdown to beat COVID-19, said a tea business association.

In its assessment on the impact of lockdown on tea industry so far, the North Eastern Tea Association (NETA) on Wednesday said the lockdown would cause crop loss of about 80 million kgs between March and May, when most of the plucking is done every year. The crop loss in the month of April alone would be about 30 million kgs, it said.

"As per the Tea Board of India official figures, the annual average price of tea of North India (which includes Assam) at the Indian auctions in 2019 was Rs.152.26 per kg. Therefore, the total revenue loss of Assam tea industry due to the lockdown would be about Rs. 1,218 crores. In view of this revenue loss of the already ailing tea industry, we solicit government’s kind consideration in evolving measures to mitigate this revenue loss," said a statement issued by NETA advisor, Bidyananda Barkakoty.

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With over 800 big tea gardens, Assam adds over 50% of the country's annual tea production. But the industry, that employs over 10 lakh people have been facing serious crisis since 2014 due to rising cost of production, spike in production and stagnant auction price.

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"Due to the prolonged lockdown, about 35% of our plantations will have to be skiffed (removal of overgrown tea leaves). Skiffing operation will add to extra costs and will require two to three weeks for recovery to bring the tea bushes into a pluckable condition. Due to this skiffing operation, there will be crop loss in April and May," Barkakoty said.

Following a notification of the Centre issued on April 3, the state governement authorised the deputy commissioners to allow resumption of work in the tea gardens and factories on the condition that they would maintain all safety protocols to avoid spread of COVID-19. Most tea gardens resumed work from April 11.

NETA said the skiffed areas would continue to lose crop in May until their full recovery. "The crop of Assam in May 2019 was 9.3% of annual crop. So the estimated crop loss for May would be about 20 million kgs," it said.

Seeking government's assistance, Barkatoky said, "Tea industry is highly labour intensive. Tea industry is one of the largest employers in the organised sector in India. About 50% of the total workforce are women. Also there is no tradition of laying-off workers in the 197 years old Assam tea industry, unlike other industries."