Tata Tea has reported a 140 per cent y-o-y loss, amounting to around Rs 68.50 crores, in the last fiscal. The Amalgamated Plantation Private Limited (APPL), a Tata Tea enterprise in its 12th annual general meeting announced that loss was 140 per cent more than the previous year.
Addressing the AGM, Chairman Ranjit Barthakur said, “We regret to inform, but that is the situation. We produced 41.23 million kg against 41.99 million kg of last year but registered 140 per cent more loss.”
This has become a matter of concern for the tea industry as it is already in a declining stage which is affecting disbursal of monthly salaries to the workers.
The crisis in the tea industry is largely due to the demand-supply mismatch as the domestic demand has not increased although the production has grown and the arrival of the small tea growers in a big way have altered the situation forever.
Dinesh Bihani, President Tea Buyers Association of Assam said, “With this rate, I see extremely bad future for Assam tea. If Magors and Tatas go down, it will take along the entire industry in Assam. Unfortunately, policymakers and intelligentsia of Assam have not woken up to the impending mega-crisis.”
“At this rate this is no future. We have opened a tea lounge in GTAC. This is an attempt to increase domestic consumption. The industry did not change for 120 years and now it is certain to go down,” he added.