Power crisis hits tea industry in Assam's Barak Valley

A pathetic power scenario is breathing down the neck of the tea industry in Barak Valley of Assam, which is the second largest tea producing region of the state after Brahmaputra Valley.

According to tea industry sources, the tea gardens of Barak Valley, which comprises three districts of Cachar, Karimganj and Hailakandi, are facing power cuts ranging from 18 to 21 hours a day. Consequently, the tea industry has been forced to depend on power generators to run the tea factories, thus increasing the cost of production.

"The situation in Barak Valley is pathetic. The tea industry has been severely affected for the past one and half month due to abnormal power cuts. We are forced to depend entirely on gen-sets which in turn is increasing the cost of production for the industry," said Dipanjol Deka, secretary of Tea Association of India (TAI).

According to Deka, the use of gen-sets has more than doubled the cost of production for the industry in Barak Valley.

The cost of per unit power from Assam State Electricity Board (ASEB) costs the industry Rs 3.95 to Rs 6 (which is also called Time of the Day Tariff and the per unit cost of power varies from time to time in a day) whereas it costs Rs 12.50 per unit when the industry generates power from diesel gen-sets. As a result, the cost of production per kg of tea has increased by more than Rs 10 for the industry.

Though the tea industry had taken up the matter with the ASEB, nothing much has changed in reality and the tea industry remains to reel under severe power cuts.

Increase in cost of production in Barak Valley might push up the price of tea at Guwahati auction, fears the tea industry. The prices of tea at Guwahati Tea Auction Centre (GTAC) has been firm from this year and it has been hovering around Rs 110 to 120.

There were reports of loss of crop in May in Brahmaputra Valley due to excessive rainfall. According to tea industry sources, there was a dip of almost 20 per cent in the production in May this year as compared to the same period last year.

Last year, when the overall tea production in India had declined by almost 2 per cent, Assam witnessed a bumper tea production.