As cost of production of tea is getting costlier, the world’s largest tea producing company, the McLeod Russel is planning to sell some more tea gardens in Assam.
Sources in the tea industry told Northeast Tenders that after completing two tranches of garden sales in Assam, the McLeod Russel is planning to sell more tea gardens in Assam and in North Bengal.
The company reportedly earned Rs 4.72 billion from the last sale of gardens in Assam. The tea producing company is selling the gardens to clear its huge debts. McLeod Russel is reportedly planning to raise Rs 4 billion from the sale of the gardens in Assam and Dooars in North Bengal.
Cash received from selling the tea gardens in Assam would be used for making long-term investments, the company officials claimed. It is likely to add more leaf from un-organized sector, and expand its capacity in the bought leaf sector.
During the last eight years, McLeod Russel bought around 20 million kilograms of bought leaf from the un-organized sector. Buying green leaves from the small tea growers is the best way to keep the cost of production low.