Covid-19: Tea firms fret about liquidity even as Centre allows production

While there has been practically no income due to lockdown, fixed costs such as wages and loan servicing have been mounting

Tea companies are wary of the financial crisis deepening after suffering an estimated production loss of around 80 million kg (mkg) this year, even though the Centre has allowed plantation firms to resume tea manufacturing amid the lockdown.

On Friday night, the union home ministry allowed companies to resume plantation activities provided they operate with half the manpower at a time. The respective state governments and the district magistrates are now required to pass similar orders and come up with further guidelines.

“There was practically no income as production was stopped and transport wasn’t available. On the other hand, fixed costs like