Guwahati, May 6 (IANS) The tea industry, the biggest organised industry in Assam, has suffered a loss of Rs 500 crore during the lockdown, induced by the Covid-19 pandemic, state Industries Minister Chandra Mohan Patowary said on Wednesday.
The Minister also said that the Assam government has taken several steps to seek US, Japanese, and Korean investment in the state as there is speculation that several companies from these countries are considering shifting of their production units from China to India.
Talking to the media here, Patowary, noting the tea industry is the biggest industry in Assam in terms of revenue and employment generation, said: “The tea cultivation being seasonal nurturing, skiffing, pruning, plucking and processing, the several week-long lockdown coincided with the new season of the vital industry. The industry severely affected due to the lockdown and the Covid-19 pandemic.”
“The tea industry has already incurred a loss of Rs 500 crore due to the lockdown…”
He said that 820 industries employing 28,000 workers and 783 big tea gardens and 1.18 lakh small tea gardens have already started functioning in the state.
Several tea industries bodies including the North Eastern Tea Association (NETA), however, have estimated that in view of the lockdown and the pandemic, the tea industry in Assam would incur a loss of 80 million kgs of tea valued at Rs 1,218 crore.
In 2019, Assam produced 715.49 million kg of tea, which was around 52 per cent of India’s total tea production of 1389.70 million kg. But due to the lockdown, the production figure is expected to dip by 32 million kg which translates to losses of more than Rs 500 crore. In 1990, Assam’s tea production was only 388 million kg, which has grown to 692 million kg in 2018 and 715.49 million kg last year (2019).
After the relaxation in the ongoing lockdown, tea auction has restarted and warehouses resumed operations in Assam.
Patowary said that the state government has engaged the services of UK’s Ernst & Young (E&Y) to study the impact of the lockdown on the industrial sector in Assam and to suggest a strategy outline to attract industries planning to move out of China.
“There is speculation that many US, Japanese, Korean companies are considering moving out of their manufacturing facilities from China to India. To persuade these companies, the Assam government has taken up the matter with the Indian government and Japanese and US trade and business bodies including the US-India Business Council and the US Chamber of Commerce, as well, to try, motivate and attract few of these companies to Assam.
“With abundant natural and human resources, Assam’s strategic locational advantage, robust industrial infrastructures and dependable connectivity makes a huge industry friendly environment.”
Assam’s Industries and Commerce Department is also in action with the Department of Promotion of Industry and Internal Trade (DPIIT), under the Union Ministry of Commerce and Industry and Japan External Trade Organisation for setting up a Japanese industrial township in Assam to attract investment from Japanese companies.
Patowary said that in view of the lockdown all Assam government departments have been asked to extend the validity of trade licenses, permits, clearances to industries, shops and business establishments from March 31 to June 30.
He also informed that a special cell – “Assam Startup — The Nest” has been set up to guide, inspire and mentor enterprising youths returning to Assam from different states.
–IANS
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