Cash limit block for bought-leaf factories

A bought-leaf factory on the outskirts of Jalpaiguri. File picture 

AVIJIT SINHA, TT, Siliguri, Nov. 29: Around 15,000 workers in bought-leaf factories (BLFs) in north Bengal are yet to get their wages as factory owners could not withdraw cash from banks as they have no hectares of plantation land to show.

Unlike the tea estates where despite some hurdles, payment of wages has started on the basis of a direction of the Reserve Bank of India, workers in BLFs are still bearing the brunt of demonetisation restrictions.

The banks are allowing tea estates to withdraw cash on the basis of a formula which takes into consideration the number of hectares of plantation area of a tea garden.

BLFs don't have plantations, they only have factories, so they are ineligible to apply to take advantage of the formula set by the RBI.

"We buy tealeaves from small growers, process these and sell through auctions and private channels. When we approached banks to let us draw beyond the outer limit (for withdrawals) for wage payment, the banks asked how much hectares of plantation area we have," Satish Mitruka, the president of North Bengal Tea Producers' Welfare Association that represents BLFs, said.

As the BLFs do not have any tea plantation area, they cannot furnish documents for this requirement.

"The bank officials referred to the November 21 decision of the RBI, where this formula was mentioned, and expressed their inability to allow us to draw more money. As a result, our workers are suffering. Right now, wages of two fortnights are due in most BLFs," he said.

In north Bengal, there are 129 such BLFs, which produce around 130 million kg of tea. In total, around 15,000-odd workers, permanent and casual, work in them.

Stakeholders in the tea industry associated with the small tea sector - that is the growers and the BLFs - pointed that no additional or new directive has reached the banks from the RBI or the central government to help BLFs pay the wages.

"The factories are facing similar problem in paying the small tea growers. There are many growers who do not have bank accounts and prefer cash payments. Despite the fact that they have supplied leaves to us, we could not pay them in cash," Mitruka said.

U.B. Das, the secretary of Terai Indian Planters' Association, said such delay in payments might lead to law-and-order problems.

"Wage payment was delayed in tea estates for the past 10 to 15 days but it has started in most tea gardens in the past four to five days. A number of BLFs are located close to tea estates. It is obvious that workers serving at these BLFs feel disappointed, seeing that workers of the nearby tea estates are getting their wages," Das said.

"The RBI or the Centre should immediately come up with a new directive to resolve this crisis in the small tea sector."

A senior tea planter based in Siliguri, who also owns a BLF, said: "The Union finance ministry or the RBI might not have any clue about the nitty-gritty of the tea industry.... However, the tea board, being the apex body, is aware of the situation. It is disappointing that we did not see any intervention by the board."

According to him, the tea board officials should have told the Centre and the RBI that the hectare-wise formula will not work for BLFs and that a fresh directive should be issued to banks so that BLF owners can withdraw money by showing documents like workers' list and other details.