Assam tea industry facing challenges: ABITA chairman Dr. DJ Baruah

STAFF CORRESPONDENT

DIBRUGARH: The Tea sector in Assam is passing through a crisis period despite tea production attaining an all-time high record in 2019. The rate of growth of exports is much below expectations. This was disclosed by ABITA chairman Dr. DJ Baruah while delivering his speech at the 130th Annual General Meeting of ABITA at the District Planters’ Club, Chaulkhowa here on Saturday.

He further stated that while the Tea industry made a record production of 1389.70 million kg in the country in 2019, Assam’s production was 715.79 million kg, which is about 51.5 per cent of the national production.

Referring to the ever-increasing cost of production despite the stagnant price realization and the below expectation export, Dr Baruah said, “The Tea industry is under stress as the cost of production is constantly increasing but it has not been compensated by the price realized for the made tea.” He mentioned this to be one of the major challenges confronting the Assam Tea industry. The ABITA chairman, however, hoped that the Union and the State governments would come forward with a relief package to bail out the industry from such a crisis. He thanked the State Government for extending relief under the Agriculture Income Tax Act with regard to the deduction of Rs 6 for every kg of tea exported through ICD Amingaon for another three years, effective from April 1, 2018 and the relief and support granted in terms of keeping the payment of green leaf cess in abeyance for a period of three years effective from January 1, 2020.

While seeking the government’s intervention in some other areas as well, Dr Baruah lauded the various welfare schemes of the Union Government as well as State Government and also the decision to provide free medicines, surgical equipment, consumables and linens to all Tea Estate hospitals. Dr Baruah further welcomed the step taken to reduce cost of the Industry. He earnestly appealed to the government to take over the Tea Estate hospitals as well as the garden schools to mitigate the industry’s cost burden

During his deliberation, Dr Baruah also highlighted the various welfare schemes that the ABITA has initiated under its ‘Social Welfare Programme’ like extending medical facilities and holding medical camps in the flood-affected areas among others.

Chairman Vivek Goenka highlighted some of the major challenges confronting the industry. He said the industry had faced a crisis period last year due to an unregulated increase in production, no export growth, consumption not keeping pace with the production, increase costs at the farm gate level and stagnant prices. He added that the industry would not be able to survive at the current price levels as the cost of production had increased whereas the prices remained stagnant over the past five years. The majority of tea industries in Assam and West Bengal are selling their produce well below the cost of production.

ABITA’s annual general meeting was also attended by JB Ekka, Principal Secretary, P& RD and Labour Department Assam, Modhulika Jonathan, chief of field office UNICEF, SK Tandon, CGM, SBI North East Circle, and other dignitaries.

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