Estates, factories and workers at Forest Department’s mercy for survival

The state-run plantation corporation, which employs about 5,000 workers, has started shutting its factories one by one, while the private players too are not optimistic in keeping them running.

The spike in tea production has only led to the fall in prices and lesser revenue for the tea factories. Coupled with this, many buyers have reportedly reduced the quantity of order – some have even stopped it altogether – being upset over the GST rates.

The tea output in the country went up to 1,325 million kg, an increase of 5.9 per cent according to the statistics from the Tea Board of India. Exports went up even higher – 12.7 per cent increase – to hit a high of 256.6 million. But the rise in tea production has led to a decrease in demand and resulted in fall of prices for the manufacturers and lesser profit for the sellers – also due to the introduction of GST. The Tea Board itself admitted that the organised sector was stagnant, with the increase that was recorded coming from the small growers.

The industry is concerned that the increase in production would not fetch them profits, as the market being inundated with produce has only resulted in stagnation of prices. According to the Tea Board statistics, the tea price in auction remained low between January and April this year at about Rs 117 per kg.

These developments have had an impact on the industry, with private companies reluctant to continue in the business in view of the challenging circumstances.

That is where the government- run tea estates and factories play a crucial role for the workers in the district.

However, even that does not look promising anymore, said workers.

“In Nilgiris, Tantea (Tamil Nadu Tea Plantation Corporation) owns 4,500 hectares of tea estate and tea powder factories.

About 5,000 people are working in the factories, besides 200 office staff on a permanent basis. Though tea sales earn the government crores of rupees, it is indifferent towards running the factories.

The government had closed the Cherambadi tea factory and shifted the workers to other factories,” AITUC district president Balakrishnan said.

According to Balakrishnan, when Cherambadi tea factory was closed, the government reasoned that the building was in a dilapidated condition. About 125 workers working there have been transferred to other factories. “It is the government’s responsibility to maintain the factory building. Having been complacent in maintaining the building, how can they shift the workers? Not only Cherambadi factory, the buildings of other factories too are weak,” he said. What has come as an additional pressure is the Tamil Nadu government’s

drive to reclaim the land given for tea estates, which has raised alarm bells among the workers. Tantea was started to provide employment for Tamils repatriated from Sri Lanka following the agreement between Indian Prime Minister Lal Bahadur Sastri and his counterpart Sirimavo Bhandaranaike. All tea factories were started after taking Forest Department land for lease for 50 years.

As the lease period is coming to an end, all factories are facing the threat of closure, the union leaders said.

The Forest Department has already directed Tantea to return the Pandiaru estate land. “As per the contract, the land given on lease for tea estate should be returned to the Forest department.

The land could be retained for tea growing only if the Forest Department gave its consent. But the department has its own targets to expand the forest,” said a Tantea official.