Lack of fresh investment for new technology amid increasing production cost has forced the tea processors to close their operations. Kiran Tea Factory, which had been operating for the last three years in Kanyam-4 of the district, closed operations recently citing the same reason. [break]
“We have no option but to close the factory as we lack funds needed to continue our processing units. We can´t resume the production unless we get support from the government,” said Kamal Paudel, proprietor of the factory.
The factory, where Paudel has invested more than Rs 700,000 so far, had been annually producing 17,000 kg of organic tea. Factories are fast losing their market abroad amid weakening supply capacity due to slowing production volume.
Mangal Tea Factory in Kanyam-4 also became a victim of government indifference.
“We have been compelled to shut down the factory after we continued incurring losses during the production process,” Subas Rai, proprietor of the three-year old factory that was closed just a couple of weeks ago.
Small scale tea producers were sprouting in the district as big factories failed to offer reasonable price to the farmers for their produce.
With more tea processing factories closing down, local farmers are struggling to find market for their freshly plucked tea leaves.
Entrepreneurs said most of the tea producers operating in the district are reporting loss due to lower production amid lack of fresh investment to increase their capacity. Local organic orthodox tea is getting increasingly popular in neighboring India, China and overseas countries.
Around two dozen small scale organic orthodox tea processors with production capacity ranging from 1,000 kg to 40,000 kg per year are operating in the district.
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