Financial crisis in tea sector deepens; companies put up estates for sale

The root of the problem, according to industry officials, is the sudden stoppage of lines of credit to tea plantation companies

With limited funds available for daily operations, the financial crisis in the tea sector is deepening with several companies putting up their estates for sale. This is despite tea prices improving marginally last year with projections of a good opening this year once auctions re-commence.

After McLeod Russel and two other tea majors – Warren Tea and Jay Shree Tea & Industries  - announced sales of estates to pare debts and bring in financial prudence, Apeejay Tea also underwent an insolvency trial before NCLAT quashed the proceedings against the tea producer. Assam Company, on the other hand, underwent a change