Assam violence hits tea despatches, cash flow

The month-long disturbance in Assam coupled with a 12-hour bandh called by the Bajrang Dal on Monday is likely to hit tea growers in the state adversely.

The month-long disturbance in Assam coupled with a 12-hour bandh called by the Bajrang Dal on Monday is likely to hit tea growers in the state adversely. With the law and problem spiralling, tea producers are finding it difficult to send tea for auction, which in turn is affecting their cash flow. The only land route to export tea goes through violence-hit Kokrajhar district of lower Assam.

Rajib Barooah, the chairman of Assam Tea Planters Association, said: ?Tea despatches have been hit across the state. For example, we are unable to send tea to auction centres. It will be difficult on Tuesday. The disruptions in pre-auction and post-auction despatches in turn are affecting our cash flow.?

Assam produces an average of 500 million kg tea per year. While 70% of production comes from the 700 gardens in the organised sector, mostly in upper Assam, rest of the production comes from the small growers.

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Normal life was paralysed in Assam on Monday due to a 12-hour bandh called by Bajrang Dal.

Estimates show an average of 2.5 million kg tea is despatched everyday during the month of August. ?The crop, supposed to reach the auction centre on Tuesday, will be put up for auction after seven days,? said Baidyanath Barkakoty, the chairman of North Eastern Tea Association. ?Any law and order problem in the state is likely to affect trade. So far, gardens have been peaceful but despatches are problem for us,? said CS Bedi, the chairman of Indian Tea Association. ?Moreover, absenteeism by workers is another area of concern for the garden owners as it tends to go up if there is a law and order problem,? Bedi said.

?There are absenteeism in Kokrajhar and Dhubri, and this might disrupt plucking of leaves,? said Azam Monem, the director of McLeod Russel. There are about seven to eight big gardens in these two districts.According to Dhiraj Kakati, secretary of Assam Branch, Indian Tea Association, the small growers in Kokrajhar and Dhubri region have been affected due to the prolonged tension in the area. ?Gardens are functioning normally and the law and order situation will not affect production. We hope that the tension will ease soon.?

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First published on: 28-08-2012 at 01:36 IST
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