The Tea Association of India has demanded that the Tea Board start disbursing pending subsidy to the industry that has suffered losses because of the lockdown and detrimental weather.

Raj Bansal, the president of the association of tea planters, said the industry might bear loss of production to the tune of 132 million kilos in north India from March to June.

Assam and Bengal are two major producers of tea in north India.

“Out of this estimated decline, orthodox production is expected to drop by 12 to 14 million kilos. We apprehend that this might also lead to drop in export levels of 10 to 15 per cent,” said Bansal.

In such a situation, the Tea Board should speed up the process of disbursing the pending subsidy to the tea gardens which, in turn, would help the gardens get out of their financial stress.

“Along with the lockdown, Assam and Bengal have witnessed massive rainfall and in some areas, it was above 400mm in May, which is around 100mm more than the corresponding period of 2019. This is bound to impact the availability of crops in coming months,” he added.

Sources in the TAI have said the tea industry has invested around Rs 1,200 crore for replanting of tea bushes and other allied activities with assurance that subsidy to the tune of Rs 400 crore would be released.

“Some people have received the subsidy but still, a substantial amount remains undisbursed. This amount, if disbursed, can help in providing some succour to the industry,” said Prabir Bhattacharjee, secretary general, TAI.