The Hindu Business Line : Nilgiris bought-leaf factories seek Central Govt help

Coonoor, Aug. 16 Bought-leaf factories in the Nilgiris have appealed to the Centre to provide a fiscal package comprising waiver of interest and re-scheduling of their outstanding loans with banks.

In its appeal to the Commerce Minister, Mr Kamal Nath, the Nilgiris Bought-Leaf Tea Manufacturers’ Association has submitted a list showing the outstanding amount of each factory. This adds up to Rs 65 crore till last fiscal.

Factories have paid an interest of Rs 9 crore and also hold interest-free advance of Rs 39.73 crore as advance paid for green leaf.

This works out to an average liability of Rs 62 lakh per factory with the banks and a possession of Rs 38 lakh as advance with the growers.

With the market collapse in the last six years, the factories have found it difficult to repay the loans. “Of the 150 bought-leaf factories, more than 70 have closed,” the associations have said.

“Although the Centre and the Tamil Nadu Government are considering wiping out the debt burden of the farmers, the small tea growers are yet to get the benefit.

The small scale tea factories are the worst hit. Banks are treating the outstanding accounts as NPA and invoking the provisions of the SARFAESI Act and taking possessions of the premises, plant and machinery and auctioning them. If this continues, this sector would be wiped out of the industry’s map,” it said.

The bought-leaf factories and the 15 co-operative Indco factories are catering to the requirements of over 65,000 small growers in the Nilgiris and produce some 80 million kg annually.

More Stories on : Tea | Farm credit | Tamil Nadu

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