Commodity News
HeadLine : Covid-19 lockdown may brew trouble for tea sector
Date : Mar 30 2020
Panic struck-plantations and allied activities may do havoc with India’s tea industry. While Tamil Nadu withdrew the restrictions yesterday, the entire sector has come to a grinding halt in all other major tea growing states of Assam, West Bengal, Kerala, Karnataka etc. Assam contributes to half of India’s 1,300 plus million kg of production while another 25 per cent production comes from West Bengal. The economy of upper Assam and North Bengal are almost entirely dependent on tea. The lockdown coincided with flush production and will virtually kill Darjeeling tea industry that earns 40 per cent of annual revenue this season. The decision has impacted both large estates and small growers, contributing more than half of India’s production, in equal measure. Small growers barely need much labour and were not barred from plucking. However, they were forced to pull shutters due to closure of the bought-leaf factories and complete collapse of the transport and auction infrastructure. Assam and West Bengal together have over four lakh such growers.

Source: Business Line
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