To help tea industry overcome the currency crisis and pay wages on time, the Assam Government has taken up the responsibility of distributing the fortnightly wages of nearly five lakh plantation workers through its disaster management department.
In tea plantations which are being located in remote areas where banks have limited reach, labourers are paid in cash on a fortnightly basis. Assam contributes nearly half of India’s total tea production.
While payments were due in the second week, the industry was constrained by restrictions on cash withdrawal following demonetisation of high denomination currencies on November 8.
Responding to the concerns of plantation owners, the BJP-led State Government has asked producers to bank transfer the requisite amount to the district authorities who will in turn pay the wages in cash.
“Assam Government has activated an emergency mechanism with permission from the Reserve Bank. Plantations have already sent the requisitions. Wage distribution will follow suit,” Azam Monem, Chairman of Indian Tea Association, told BusinessLine.
Bengal lagging behind
Meanwhile, tension is rising at tea producing zones in North Bengal districts due to uncertainties in wage payment, where the State Government is yet to activate any such emergency measure.
West Bengal contributes nearly a fourth of national tea production with 2.5 lakh labourers in the organised sector alone.
According to Monem, the State Government has called a meeting with tea producers this evening. The Trinamool Congress-led West Bengal Government is opposing the Centre’s decision on demonetisation.