Tea Board to help Darjeeling growers

Darjeeling tea growers affected by the on-going Gorkhaland agitation will get help from the Tea Board to assess loss and work out a recovery package.

“The tea growers’ associations informed us that they were not in a position to come up with pointed demands for help from the Centre as they were too disturbed by the continuing violence and needed assistance. We have asked the Tea Board officials to sit with them and work out an assistance plan,” a Commerce Ministry official told BusinessLine .

Last month, when industry associations, including the Darjeeling Tea Association and the Indian Tea Association, had sought help from the Centre, they were asked to frame specific proposals which could be taken up with the Finance Ministry.

“The industry has been unable to come up with proposals yet but we are sure that with the Tea Board stepping in, the matter would be sorted out soon,” the official said.

The Commerce Ministry is of the opinion that cash compensation alone cannot help the industry that is staring at loss of ₹400 crore.

“The mid-term and long-term recovery plans could include different mechanisms such as arranging working capital, giving interest subvention for the working capital and increasing the moratorium period on long-term loans,” the official said.

It is not just the second flush of tea, grown between June and August, that got destroyed due to the strike. The third flush, too, is likely to be lost as the required pruning of bushes after the rains could not be carried out.

“The attempt will be to come up with a proposed package as soon as possible so that it can be discussed with the Finance Ministry and finalised,” he added.

The Darjeeling tea industry needs to be back on its feet as soon as possible as it is apprehensive of losing its export market to competitors if it can’t restore supplies soon.

Of the total 8 million kg of Darjeeling tea annually produced across 87 estates, about half gets exported.

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