Business Standard

Flood woes for Assam tea industry

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Press Trust Of India New Delhi
Tea companies in Assam, which have been struggling to cope with the rise in cost of production and loss in international markets, are now in even deeper trouble after the recent floods coupled with pest attacks.
 
With unprecedented floods taking its toll in almost all the tea gardens, especially in the Barak Valley, the Assam tea industry has seen a decline in production of 2 million kgs of tea, from 2,20,560 thousand kgs to 2,18,128 thousand kgs till August this year.
 
The tea industry of Barak Valley, which accounts for around 120 gardens "" 70 per cent of them owned by the Tea Association of India (TAI), was under a recession since 1999, but was showing signs of comeback till August this year by posting an increase in production of tea by 1 million kgs over last year.
 
This comeback was at a time when the tea industry of Assam valley (Brahmaputra Valley) had posted a decline of 3 million kgs.
 
But the unprecedented floods have turned the tables now, as it is raining woes for the entire tea industry.
 
With rail communication already cut off between Barak Valley and other parts of the state since June this year following collapse of a bridge in North Cachar Hills, the road communication was also snapped on July 27 when a 300 mts stretch of National Highway was damaged at Sonapur near Jowai in Meghalaya, thus cutting off Barak Valley, Tripura and Mizoram completely from the rest of the country.
 
After undertaking repair works, though the National Highway was opened a week later, fresh and unprecedented floods in Barak valley since the first week of September wrecked havoc.
 
Many arterial, as well as interior, roads were damaged or washed away by the floodwaters, thus cutting off many parts of the valley completely from rest of the country.
 
Floodwaters submerged few and encircled many of the tea gardens in Barak Valley.
 
At least seven tea gardens had to shut down operations a fortnight ago as it became difficult for them to import fuel, coal and other essentials to keep their factories running.
 
Food scarcity was looming large among the tea garden labourers. Plucking of leaves had to be stopped in many gardens as bushes were submerged or damaged by floodwaters. Tea, already out of factories, were waiting to be dispatched as both road as well as rail communication were snapped.
 
Though floodwaters have receded in some parts of the valley and road communication has been restored partially, Karimganj district still remains completely cut off from rest of the country. Four out of the seven tea gardens still remains closed. Food and other essentials, though have started trickling down with partial opening of arterial roads in other parts of the valley, dispatches are yet to start as movement of heavy vehicles has not been permitted yet in many of the roads.
 
Sources in the tea industry said that though the total damage caused by floods in Barak Valley is yet to be ascertained as floodwaters have not yet receded completely, it might run into several crores.
 
For over a month now, none of the gardens in the valley have been able to dispatch tea for auctioning in Guwahati, a severe financial crisis looms large for them.

 
 

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First Published: Sep 27 2007 | 12:00 AM IST

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