COVID-19: Tea industry seeks financial package from Centre

Kolkata, Mar 30 () The tea industry has sought afinancial package from the Centre to tide over the coronaviruscrisis as production in the gardens came to a halt in the wakeof the ongoing 21-day nationwide lockdown, an official said onMonday.

The Consultative Committee of Plantation Associations(CCPA), the largest body of tea producers in the country,wrote a letter to the Union commerce ministry, seeking arelief package for the sector which is "passing through anacute financial crisis" in the last five years.

In view of the production loss during peak season anddisruption in value chain due to the lockdown, the sector isfacing a severe cash flow problem, impeding its ability tocope with wage and other related obligations, CCPA chairmanVivek Goenka said in the letter on Sunday.

"We appeal for a financial package from the governmentto ride over the crisis and help secure employment of around1.2 million workers engaged in this sector," it said.

The CCPA sought the government's intervention tosupport the wage payments through "direct transfer of Rs 1,000per week into the workers' accounts for three months".

The financial requirement for tea workers of WestBengal and Assam will be around Rs 1,100 crore, the planters'body said, adding that it sought "subsidisation of employers'portion of PF contribution for three months, which will have afinancial impact of Rs 145 crore".

Tea Board deputy Chairman Arun Kumar Ray said, "We arefully aware of the problems of the industry in this period ofcrisis. Whatever representation is sent to us, we will forwardthem with the request for taking further action.

"We are not sure how long the lockdown will continue.Ultimately, all representations will have to go the financeministry for its approval."

The industry body also pleaded with the government forgranting a moratorium for one year on all loan repayment alongwith interests to prevent the companies from defaults.

It also sought interest subvention at a rate of 3 percent on all working capital and term loans.

The CCPA has also requested the Centre to provideassistance under various government schemes such as MNREGA,Pradhan Mantri Garib Kalyan Yojana and free gas cylindersunder PM Ujjwala programme. DCBDC BDC