The Hindu Business Line : Assam tea gardens: No escaping from extortion

ASSAM continues to suffer and prosper from the strange relationship between its tea industry and the outlawed rebel force, United Liberation Front of Asom (ULFA).

Though no one is willing to discuss the issue at the official level, it is an open secret that there are interface points between the tea industry and the separatist outfit.

It has been for more than a decade now that tea companies in Assam have been facing extortion threats from ULFA. In fact, whoever runs a tea garden in the region takes into account this crucial factor before commencing operations.

Recent reports have indicated that senior State police officials have sent a high-alert notice to the administration stating that ULFA has been sending extortion demands to medium and large tea companies located mostly in Dibrugarh and Tinsukia districts.

When contacted by Business Line, a number of police officials in the State confirmed that ULFA was active in the region but no one could give names of affected companies.

"We cannot give you names because we have not received a single complaint from any of the tea companies. But we know that the situation is tense," said a senior police official.

The industry association is also unaware of any crisis in the 800-odd tea gardens of Assam.

Mr C.K. Dhanuka and Mr Suresh Bansal, Presidents of Indian Tea Association and Tea Association of India respectively, categorically stated that they have not received any such report from their members.

Even so, member companies of these two associations agree that everything is not hunky-dory. According to them, the situation has not changed much from what it used to be 8-10 years ago.

When asked why companies do not come out into the open, they say: "Why should we? It is a law and order problem and we know the State administration does not have a solution. But we will have to continue to operate. So, it is better to buy peace at an affordable price," said the CEO of a tea company with operations in Assam.

The State Government is not happy with this attitude of the tea industry. It feels that the problem is being aggravated because the tea industry is giving in to the demands of ULFA.

The Chief Minister Mr Tarun Gogoi has repeatedly urged the industry to stop paying heed to ULFA's extortion threats.

The tea industry is the largest employer in Assam. It produces around 475 million kg of tea, which constitutes approximately 55 per cent of the total domestic tea production.

The recent upswing in the tea industry's fortunes is making the job for the State administration even more difficult.

"After four years tea prices are rising. Instead of raising a controversy over ULFA, the companies are eager to reap the benefits of the price rise," sources said.

They added: "Frankly, we cannot spend too much time on the ULFA extortion issue. If we do, we will lose business and the State Government will lose revenue."