The Darjeeling Tea Association, the largest organisation of planters in
the region, is apprehending exports to dip by 50 per cent because of the
Covid-19 pandemic and has appealed to the Centre for an air freight
subsidy.
The Darjeeling Tea industry comprises of 87 gardens and produces
around 8 million kilos of made-tea annually. The industry employs nearly
70,000 workers.
Binod Kumar Mohan, the Darjeeling Tea
Association (DTA) chairman, has said in a letter to the Tea Board of
India that the Darjeeling Tea industry had already been going through a
crisis because of the unprecedented 104-day closure during the 2017
statehood agitation. He pointed out that unlike in other tea-producing
areas, the Darjeeling Tea industry was export-oriented.
“Different
from other parts of the industry, the Darjeeling Tea industry is an
export-dependant industry with 70 per cent of the annual revenue earned
from the export of 95 per cent of the first and second flush teas,”
Mohan wrote.
The DTA has pointed out in the letter that because of the 20-day
suspension of work during the pandemic-related lockdown, “the loss of
production and revenue of the Darjeeling Tea industry is estimated to be
1.5 million kg and Rs 200 crore, respectively, in this current season.”
The first and second flushes command the highest prices.
The
industry is worried that major Darjeeling Tea-importing countries such
as Germany, Japan, the US and the UK have been badly affected by the
Covid-19 crisis.
“Germany, which is the largest importer of
Darjeeling Tea, has declared a recession. The estimated loss of exports
of Darjeeling Tea is expected to be 50 per cent in the current season,”
Mohan has written.
The industry has listed a slew of interventions
needed from the Tea Board of India, the commerce and industries
ministry and financial institutions.
Among the demands are a 50
per cent subsidy on air freight for Darjeeling Tea exports and the
“immediate release of a one-time revival package for the industry for
the setback of the unprecedented closure (of 104 days) in 2017”.
“The
credit ratings of the Darjeeling Tea industry have already been
downgraded by the banks and financial institutions since 2017. All the
financial accommodations have either been withdrawn or substantially
decreased, making the industry cash-strapped,” Mohan wrote in the
letter.
The industry also wants other subsidies, extension of the
validity of all licences and certificates by six months, restrictions on
the import of Nepal tea, a moratorium on the payment of principal and
interest for six months and restructuring of term loans.
50 per cent plea
During
a videoconference with chief minister Mamata Banerjee on Friday,
Trinamul leaders from Jalpaiguri and Alipurduar districts requested that
50 per cent of the workforce be allowed to work in the tea gardens at a
time. The state government has set a ceiling of 25 per cent, although
the Centre had approved a limit of 50 per cent.
“She listened to us and assured us that she would look into the issue,” said K.K. Kalyani, the Jalpaiguri Trinamul chief.
https://www.telegraphindia.com
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