The Centre is ready to work out a financial package to support tea growers in Darjeeling who have been hit hard by the ongoing agitation for a separate State. It has asked the industry to give details of the kind of assistance it is seeking.

“With the second flush tea grown between June and August lost completely and the third flush, too, set to go the same way, tea gardens are staring at huge losses this year. The government is willing to provide assistance and the industry has been asked to come up with a concrete proposal for the same. We have to see if the demands fit into existing schemes or new schemes need to be formulated,” said a government official.

Representatives from the Darjeeling Tea Association, a body of tea producers from the region, approached the Commerce Ministry recently asking for assistance to deal with the huge losses the industry was facing due to the continued agitation in the region, the official said.

With the Gorkha Janmukti Morcha renewing its agitation for a separate Gorkhaland state since June, all activities have stopped in Darjeeling’s tea gardens. This has led to the loss of the entire second flush tea, which fetches a premium in the export market.

₹400 crore loss

The Indian Tea Association, an association of tea producers across the country, has estimated a loss of ₹400 crore to the Darjeeling tea industry due to the agitation.

“The Darjeeling tea growers are apprehensive that since the cutting and pruning required to allow bushes to regenerate properly when it rains has not happened, the third flush may also be poor,” the official said.

However, while the DTA representatives pointed out that the industry could do with a range of assistance from the government, including cash compensation, working capital subsidy and interest subvention, the specific numbers were missing.

“We have to know exactly the form in which they are asking for assistance. If it fits into our existing schemes, we will give them priority. If they want us to go for something totally new, we have to go to the Department of Expenditure for approval,” the official said.

For example, the association needs to specify the size of cash compensation and kind of interest subvention it is looking at. For working capital subsidy, too, the limits need to be worked out by determining the size of the gardens, the official added.

“The Darjeeling Tea Association has said that it will re-formulate its demands and get back with specifics,” the official said.