McLeod Russel staring at 5.5-million kg production loss in FY21 amid COVID-19 pandemic

Kolkata, May 18 () McLeod Russel, the country'slargest bulk producer of tea, is expecting a decline inproduction by around 5.5 million kg in the current fiscal dueto the COVID-19 pandemic, a company official said on Monday.

The company's usual production volume is close to 52million kg, out of which nearly eight million kg are purchasedfrom small growers.

"Last year, across Assam and West Bengal, our ownproduction volume was 46 million kg. We bought additionallyaround six million kg from small growers," Wholetime Directorof McLeod Russel Azam Monem said.

He said this year, as the gardens suffered productionloss in March and the whole of April due to the coronaviruslockdown, only some skiffing activity only took place.

"So far, our own production loss is around 4 millionkg and we will be able to purchase only 1.5 million kg fromsmall growers," Monem told .

The tea industry's production loss will be around 115million kg this year, while in terms of revenue, the figure islikely to be Rs 2,000 crore, he said.

McLeod Russel's loss will be nearly Rs 85 crore in thecurrent fiscal, the company official said.

"We hope to make some recovery in June and July. Wewant to protect the valuable second flush that comes from themiddle of May," Monem said.

While Assam has allowed 100 per cent workforce in teagardens, the West Bengal government has given consent for only50 per cent, he said.

"We have approached the state government for allowing100 per cent workforce," he added.

The Williamson Magor Group company has 31 gardens inAssam and two in north Bengal.

Monem said the government should provide somefinancial stimulus in the form of enhanced working capitallimit from banks in this challenging scenario. DCRBT RBT