Assam tea industry incurs Rs 1,218-crore loss: North Eastern Tea Association

GUWAHATI: The tea industry in Assam has incurred a huge revenue loss of Rs 1,218 crore – 80 million kg at the rate of Rs 152.26 per kg – due to the nationwide COVID-19 lockdown, as on April 15, 2020.

The North Eastern Tea Association (NETA) conducted a survey on the loss of revenue for the tea industry in the State. The findings of the survey by NETA are given below:

(1) Based on the April 3 guidelines of the circular of the Union Ministry of Home Affairs, the tea industry in Assam — including plantation with maximum of 50% workers — has been exempted from the purview of the lockdown. Therefore, normal tea production operations started from April 15 in the State.

(2) After an unproductive off-season gap of almost three months, the new tea season had barely started around the second week of March. The tea gardens had to close down from March 22 due to COVID-19 related issues and the subsequent national lockdown. Therefore, the industry has lost almost the entire crop of March 2020 which is estimated to be about 30 million kg. As per Tea Board of India figures, the harvesting of tea in Assam in March 2019 was 4.6% of Assam’s annual production in 2019 (January to December) which was 715.79 million kg.

(3) Due to the prolonged lockdown, about 35% of plantations will have to be skiffed (removal of overgrown tea leaves). The 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.

(4) In Assam, in the month of April 2019, 6.3% of annual crop was harvested. Considering the fact that the plucking operations will start from April 15, and taking into account the crop loss due to skiffing, the total crop loss for the month of April would be about 30 million kg.

(5) Moreover, 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. The estimated crop loss for May would be about 20 million kg.

(6) Therefore, the total estimated crop loss of Assam tea industry due to lockdown is about 80 million kg. 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.

(7) Therefore, the total revenue loss of Assam tea industry due to lockdown = 80 million kg × Rs.152.26 per kg = Rs. 1218 crore.

(8) The revenue loss is as realistically as possible based on available official data of Tea Board of India.

(9) Tea industry is highly labour-intensive and one of the largest employers in the organized sector in India. About 50% of the total workforce is women.

(10) There is no tradition of laying-off workers in the 197-year-old Assam tea industry, unlike other industries.

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