As Andrew Yule & Company suffers loss; AASAA flays Centre, Assam govt

Syllad | The Rising MeghalayaAugust 29, 2024

As the state-run Andrew Yule & Company Ltd suffered a loss of nearly Rs 100 crores during 2023-24 forcing it to sell of 10 tea gardens in Assam, the All-Adivasi Students’ Association of Assam (AASAA) criticized the management of the company for its failure to manage 10 tea gardens in the state.’

The company has 10 out of its 15 tea estates and has business in several other sectors including engineering and electrical segments. “The ongoing financial instability threatens to trigger labour unrest, escalating the risk of law and order in the tea gardens. Already, delayed payments and statutory dues have led to frequent demonstrations,” Assam Chief Secretary Ravi Kota said in his letter to Kamran Rizvi, secretary to the Ministry Of Heavy Industries.

The letter said that the Assam government was informed that the financial instability was caused by significant crop losses due to fungal and caterpillar infestations, rising wage costs, and a depressed tea market in 2023-24.

In a statement here on Thursday, AASAA Central Committee general secretary Amarjyoti Surin challenged the claims of “financial instability” attributed to crop losses, rising wage costs, and a depressed tea market and pointed out that despite these reported issues, tea prices in local markets and hotels have not changed, raising questions about the accuracy of the claims.

He emphasized the need for the government to address potential financial mismanagement and ensure transparency in the tea industry’s economic conditions.

Surin has called for a judicial probe into alleged corruption and fund mismanagement within the government and Andrew Yule & Company Ltd. He criticized the ruling party MLA for supporting the government’s approach of neglecting the problem rather than addressing it.

The AASAA has reminded both the government and the people of Assam about the significant contributions of the tea sector to the state’s economy. “According to the “Economic Survey, Assam,” the tea industry generates substantial revenue through exports and taxes. Lack of investment in research and development (R&D) for the tea garden sector, which is a major source of employment, supports environmental sustainability, and plays a crucial role in Assam’s economic landscape,” Surin said.

Nearly 50% of the written-off loans belonged to large industrial houses.  off loans include loans to large industries and services: over Rs 7.40 lakh crore and Rs 2,04,668 crore recovered in written-off loans since April 2014.

The AASAA has argued that if major corporate and industrial houses are eligible for loan write-offs from the central government, then it is equally reasonable to question why Andrew Yule & Company Ltd’s 10 tea gardens, which fall under the public sector, cannot be revived. The organization contends that similar financial relief and support should be extended to these tea gardens to address their challenges and ensure their viability.

The AASAA also criticized the government’s decision to lease off the Jagiroad Paper Mill, stating that it has left workers in a precarious situation while benefiting a select few. The organization emphasized the need for responsible decision-making that prioritizes the welfare of workers and supports the local economy. They argued that such decisions should focus on protecting jobs and ensuring that economic benefits are more equitably distributed, rather than favoring specific interests.