Birla shuts down its Ledo tea factory in Assam

By Staff
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Google Oneindia News

Guwahati, Aug 14 (UNI) Jayshree Tea and Industries Limited, owned by Birlas, has shut down its brought leaf factory (blf) located at Ledo in Upper Assam's Tinsukia district.

Official sources said the closure decision was taken following 'shortage of green leaf and high market rates which made it difficult to run the unit', called the Vinayak Tea Factory.

The unit was among the three brought leaf factories of the Jayshree group, which owned 10 gardens in Assam and 17 in the country.

Officials of the defunct factory - which has two CTCs - said the unit sued to produce over 5 lakh kgs of tea per annum, with a green leaf intake of around 20,000 kg per day.

"Rates of green leaf have been shooting up, and as such the cost of production is scaling the market rates,'' said a tea industry source.

Meanwhile, tea production in the first phase in the state - which produces 60 per cent of the world tea - has dipped sharply due to an uneven rainfall and floods in parts of Assam valley.

The Assam tea industry has posted 2,379 thousand kgs of decline in tea production from January to May, 2007, as compared to production figures in the corresponding period in the previous year.

Inclement weather coupled with pest attacks in some of the tea gardens in the Assam valley has been another reason in low yield in the first phase.

The tea mosquito bug Helopeltis has been reported to have played havoc in some of the tea gardens in southern bank, whereas in the northern bank; it is Loopar - a caterpillar, which is said to have affected production in few of the tea gardens.

Though pest attack has been a reason behind this year's decline in production, tea industry primarily attributes it to an unfriendly weather.

"This decline in tea production has been after many years", said a tea industry source.

He added that Helopeltis or loopar couldn't be the only reasons behind this decline in production. Uneven rains and floods are other factors that have affected tea production in the state, he said.

In the month of May alone, tea production in Assam Valley has declined by 1,063 thousand kgs as compared to May 2006.

However, it is pertinent to note that prices of brought leaf tea are around Rs 10-15 less than the garden tea.

Meanwhile, Jay Shree Tea&Industries Ltd has announced that the Board of Directors of the Company proposes to obtain shareholders approval to either divest/ demerge/ sale/ transfer or otherwise deal with its bought leaf manufacturing unit at Ledo. The process would be done by taking consent of the shareholders by means of postal ballot. The Scrutinizer is expected to submit his report to the Company after the completion of the scrutiny on September 07, 2007 and the results of the Postal Ballot will be announced by a Director of the Company.

UNI

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