Biggest challenge faced by tea industry is stagnancy in tea prices: Bharatiya Chah Parishad

A CORRESPONDENT

DIBRUGARH: The Bharatiya Chah Parishad (BCP) chairman Nalin Khemani on Thursday said the biggest challenge faced by the Assam Tea Industry is the stagnancy in tea prices, high cost of production and low productivity.

Speaking at the BCP AGM, Khemani said, "Improving the competitiveness of the industry in terms of productivity is the only solution to this problem. In the liberalized regime of world trade, paramount importance has to be given to the marketing of tea. The crisis in the tea industry has a huge negative impact on the family life of the plantation workers and all others associated with the Industry."

"An issue that concerns me is the critical coverage the Assam Tea Industry has received in numerous articles. These articles presented the industry's execution of its social commitments in very poor light. While presenting a viewpoint, such articles must adopt a more panoramic view of reality," he said.

He further added, "The output of a person per day in Assam stands at only 2.2 kgs per Mandays as compared 6 Kgs per Mandays in Kerala. Tea estates in Assam deploy as high as 2 to 2.5 Mandays per Hectare as compared to deployment 0.80 Mandays per Hectare in Kerala in running the tea gardens. The cash wages in Assam in Rs 232 (with ration & kind benefits exceeding Rs 350) against Rs 427.35 (without ration & kind benefits) in Kerala. The cost per Hectare of Labour in running a tea garden in Assam is Rs 787.5 per hectare against Rs 341.8 per Hectare in Kerala."

"The Guwahati auction average of a kilogram of CTC tea, for the year 2021, stands at Rs. 182. The value output of a person per day in the tea industry in Assam stands at only Rs. 409. As a benchmark, that figure for the tea Industry in Kerala, stands at approximately Rs. 852. Moreover, that figure for a high technology company like Infosys stands at 17,000.

Hence, Cost to Company (which is a composite of the Wages & Social Responsibility Cost) of a manday beyond a certain point is an economic impossibility for the industry. With over 60% of the total budget of a tea company allocated to wages, this should be a primary concern of the Industry going forward. We need to equip our workforce with the correct processes, training, technology and tools for this output to rise," the chairman said.

He said, "The government of India has initiated skill india movement to improve productivity. Productivity in plantations has to be increased by replantation of new varieties, scientific and mechanised harvesting. Assam produces 60% of its yearly production in 4 months from July to September. During these 4 months industry faces huge worker shortage resulting in poor quality of harvest. Time has come we should implement mechanized harvesting to improve productivity of Assam Tea Industry."

"The tea Industry has been the back bone of the rural economy in Assam for decades and the livelihood of over a million workers and several lakh of small tea growers of the state depends on the tea industry," he said.

BCP has completed 78 glorious years in the service of the tea industry since its inception in the year 1944. BCP is a strong force with 103 member spread over Assam, consisting of Tea Estates and Bought Leaf Factories.

State Cabinet Minister Bimal Bora, Minister Sanjay Kisahan, ACMS president Paban Singh Ghatowar, Prabhat Bezbaruah, former chairman Tea Board of India, Sarvesh Saharia, vice chairman BCP and Doli Prova Kalita, BCP secretary were present during the annual general meeting of BCP.

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