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North Bengal Tea Gardens Face Closures Amid Cash Crunch

North Bengal Tea Gardens Face Closures Amid Cash Crunch
North Bengal tea industry warns 15-20 more gardens could shut amid cash crunch - Telegraph India · telegraphindia.com

Tea gardens in north Bengal are facing serious money problems.

A planters’ group says 15 to 20 more gardens might close.

About 15 gardens in the region are already closed.

The gardens are earning less because prices have stayed low and exports have fallen.

Their costs are also rising.

They must pay workers a 20 per cent bonus, which could make the problem worse.

The group wants unpaid government subsidies and other financial help to reach the gardens quickly.

Government officials have also asked closed gardens to reopen, but the planters say lasting solutions are needed.

Key facts

Potential additional closures
15 to 20 north Bengal tea gardens
Currently closed gardens
Around 15
Bonus requirement
20 per cent, reportedly due by October 5
Unpaid subsidies
Tea Board subsidies allegedly pending for seven to eight years
Meeting date
September 25
Requested measures
Financial relief, subsidy clearance, case-by-case intervention and investment incentives
Industry pressures
Stagnant prices, lower exports, rising costs and other external factors

Quotes

Mahendra P. Bansal

Chairman of the Terai Indian Planters’ Association

“The present situation in the entire industry is extremely alarming, with stagnant prices, lower exports, rising costs and other external factors.”
telegraphindia.com
“This non-payment of subsidy has resulted in accumulation of statutory dues, workers dues and other defaults and dues.”
telegraphindia.com

Sources

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