Tea producers' body estimates Rs 2,100-cr revenue loss for industry in 3 months; lockdown aggravates financial stress

The apex body of tea planters has urged the commerce ministry and the state governments of Assam and West Bengal to extend a financial package.

Press Trust of India May 25, 2020 20:07:49 IST
Tea producers' body estimates Rs 2,100-cr revenue loss for industry in 3 months; lockdown aggravates financial stress

Kolkata: The Indian Tea Association (ITA) has pegged a revenue loss of Rs 2,100 crore for the industry in Assam and West Bengal during March, April and May.

The association said that in these two states, the total loss of production during the three months will likely be 140 million kg.

Tea producers body estimates Rs 2100cr revenue loss for industry in 3 months lockdown aggravates financial stress

Representational image. Reuters

Based on last year's North India auction prices, the estimated revenue loss will be Rs 2,100 crore, ITA said.

"The lockdown due to COVID-19 pandemic has aggravated the financial stress of the tea industry," an ITA official said.

Click here to follow LIVE updates on coronavirus outbreak

He while input costs have been rising for the last five years, there has been no concomitant rise in prices.

Owing to the lockdown, ITA estimates production in Assam and West Bengal to have declined by 65 per cent during March and April, and around 50 per cent in May.

Deployment of workforce below normal strength has also led to operational problems, the official said.

The apex body of tea planters has urged the commerce ministry and the state governments of Assam and West Bengal to extend a financial package, which includes interest subvention, hike in working capital limits and relief in payments of electricity charges and PF dues.

On the export front, ITA said there is strong demand for Assam second flush tea with queries pouring in from Iran, Russia, UAE and Europe.

Updated Date:

also read

Support COVID-19 vaccination efforts, but against health passports, says Brazil's Jair Bolsonaro at UNGA
World

Support COVID-19 vaccination efforts, but against health passports, says Brazil's Jair Bolsonaro at UNGA

Bolsonaro was the first world leader to speak at the high-level meet after UN Secretary-General Antonio Guterres opened the debate

Kerala education minister says detailed plan for reopening schools will be prepared soon
India

Kerala education minister says detailed plan for reopening schools will be prepared soon

V Sivankutty said deliberations with various departments are ongoing to ensure safety of the children attending the schools

Mumbai's COVID-19 addition below 400 for 3rd consecutive day, active tally at 4,744
India

Mumbai's COVID-19 addition below 400 for 3rd consecutive day, active tally at 4,744

The case doubling time is 1,271 days and the average growth rate between 6 and 12 September stood at 0.6 percent, data from the Brihanmumbai Municipal Corporation revealed