Hills politics leads to losses

SNS, Kolkata, 3 October: Continued political disturbance in Darjeeling has affected the economy of the region badly and the tea and hospitality industry are likely to incur losses to the tune of Rs 70 crore, according to a survey conducted by ASSOCHAM. 

Though the political movement called by GJMM has been postponed till 20 October, most of the tourists, both domestic and foreign, who planned to visit the area have cancelled their trips affecting the hospitality industry badly. Around 4.5 lakh tourists visited the area in 2008-09 and the number fell because of political movement in 2009-10. 

During 2010-11, the tourism industry flourished and people started visiting the area. But it witnessed a sharp fall because of political movements. Though the movement has been postponed till 20 October, tourists are apprehensive and 80 per cent of those who had booked accommodation have cancelled it. The hospitality industry makes business between March and December and it is in doldrums because of the political movement. The industry is likely to suffer losses to the tune of Rs 45 crore. 

The tea industry has also been badly hit by the movement. Besides tea, export of Oranges and woolens has been affected due to prolonged political activity. Darjeeling’s tea industry comprises 87 gardens which employ about 70,000 workers. 

Since 2008, the Hills have seen two phases of the Gorkhaland movement and the impact can be seen from the tea production. The annual tea production data suggests that Darjeeling tea production had been witnessing a downward trend since the movement has started. 

Tea production has declined from 901 lakh kg in 2008 to 820 lakh kg in 2012, that is, an average decline of 2.3 per cent every year. The industry is losing its reliability in the domestic and global markets because of uncertainties. 

This year the weather has been good for tea production but the political weather seems to vitiate it, therefore the tea industry is estimated to lose almost 25-35 per cent of its production. The report states that loss in the unorganised sector is very heavy.